Heineken takes on debt from Globe Pub division
DANISH brewer Heineken said yesterday it has acquired discount debt from its UK pub management firm, Globe Pub Company, in a bid to reduce its own debts.
The beer-maker acquired a further 55.6 per cent of class A1 notes, representing a face value of £111.2m, issued by Globe, meaning it now owns 85.7 per cent of these notes.
It also bought 31.6 per cent of Globe class B notes, representing a face value of £18m, and a 21.7 per cent participation in the syndicated bank debt – £50m out of a total of £230m. In a swap transaction the company also took the interest of the counterparty of Globe Pub Management.
Heineken purchased the notes and bank debt at a substantial discount and, since Globe – which runs 425 pubs in the UK – has been consolidated for accounting purposes since April 2008, has reduced its own debt position and realised a book gain.