Case study: How Hall & Woodhouse refinanced
M&G Investments recently provided a £20m, 10-year loan to independent brewer and pub owner Hall & Woodhouse. AccountingWEB's Robert Lovell caught up with company FD Martin Scott and head of direct lending at M&G, James Pearce, to find out about the nuts and bolts of the funding process.
Hall & Woodhouse (H&W) is a family-owned brewer founded in 1777 and is perhaps best known for its animal-themed beer range, including Badger, Tanglefoot and Fursty Ferret.
It currently employs over 1,400 staff and runs more than 200 public houses mostly across the South West. The company also has ambitious plans to continue growing.
Due to the longevity of the Dorset-based business, H&W wanted to secure long-term finance to align debt and underpin its plans to acquire and develop new pubs around the country.
When its existing bank facility approached the end of its terms, the company was open to treading a different finance path.
“We’ve got a club funding facility with Lloyds, Barclays and HSBC, and we had some of that money rolling off in March of this current financial year. So we went to market about a year ago to start looking for alternatives,” explained H&W finance director Martin Scott.
“We just really wanted to diversify and lengthen the finance facility...
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- The funding process
- Financing facility nuts and bolts
- Benefits and impact of the deal