Mitchells and Butlers has confirmed the completion of a £350m funding round, as shareholders raised vital cash for the group.
The owner of All Bar One and Toby Carvery has raised £350.5m through the upcoming issuing of 167 million new shares in an open offer.
The funding will be used to reduce the group’s unsecured debt, meet its fixed payment arrangements, and invest in its estate.
Moreover, the completion of the open offer has facilitated a £150m three-year unsecured revolving credit facility between the restaurants, pubs, and bars operator and its banks.
The cash injection follows a technical change in control of the company, with its major shareholders joining under a newly incorporated holding company, Odyzean, which will hold approximately 55% of the firm’s issued share capital.
The partnership will “address the significant capital needs” of the group, while providing a “clear and consistent framework” for their future relationship.
The funding remains subject to approval by shareholders at a general meeting today (11 March).
However, Mitchells and Butlers has made an application for the new shares to be placed on the London Stock Exchange, with trading expected to commence tomorrow (12 March).