22 March 2005 – LAWFUEL – The Law News Network – Linklaters advises le…

22 March 2005 – LAWFUEL – The Law News Network – Linklaters advises leading pub retailer on major securitisation deal Linklaters has acted for Greene King, the leading pub retailer and brewer on the securitisation of a portion of Greene King’s managed and tenanted pub estate, listed on the Irish Stock Exchange.

The deal created a structure that allows for transfers between the securitised and non securitised estates and considerable business operational flexibility within a framework designed to satisfy concerns of Rating Agencies and investor expectations. The financing allowed Greene King to take advantage of very attractive pricing for the debt, with proceeds being used to repay existing bank facilities.

The value of the securitisation was £600 million and consisted of £150 million Class A1 Secured Floating Rate Notes due 2031, £320 million Class A2 Secured 5.318 per cent Notes due 2031 and £130 million Class B Secured Fixed/Floating Rate Notes due 2034. The deal closed on 7 March 2005.

Linklaters structured finance partner, James Harbach commented:

“The transaction was unique in that it involved the securitisation of part of both tenanted and managed estates, some of which formed part of the Laurel pub estate recently acquired by Greene King and unlike other pubco securitisations, Greene King not only acts as intermediary supplier of products from third parties but also brews and supplies its own beer. We are delighted to have worked with Greene King in helping them achieve this complex securitisation deal.”

The Linklaters team led by James Harbach included Brad Duncan, Dan Peart, Victoria Winstanley, Alex Coyne (structured finance), Rob Cleaver, Sarah Townson, Alex Molla (Corporate), Mark Burgess-Smith, Georgina Behrens, Sam Grutchfield (Property), Amnon Epstein (Banking), Andy McBride (Competition), Rosalind Knowles (Pensions), John Lindsay and Alan Walker (Tax).

Other parties included Freshfields Bruckhaus Deringer, legal counsel to the arranger, Birketts (property law counsel to the Borrower/Greene King group).

For further information, please contact: Tasneem Watson on +44 20 7456 4397 or [email protected] or Rupert Winlaw on +44 20 7456 3219 or [email protected]

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