PizzaExpress owner keeping lenders waiting for debt talks: report
Hony Capital acquired PizzaExpress in a £900m leveraged buyout five years ago.
PizzaExpress owners Hony Capital continue to remain mum on investors’ move to tackle the pizza chain’s debt woes, Bloomberg reports.
Citing people knowledgeable of the matter, the report noted a letter by investors holding 70% of PizzaExpress’s most senior bonds being sent to the company, pledging to provide new funds. However, the pizza chain “has so far met the approach with silence.”
PizzaExpress’s senior secured bondholders have included Cyrus Capital Partners Europe LLP, HIG Capital LLC and Marathon Asset Management LP whilst Perella Weinberg Partners and Latham & Watkins are advising the investors.
According to creditors also cited by Bloomberg, PizzaExpress’ recent expansion to China is “draining cash from the business” due to an “unsustainable” capital structure.
Earlier, Hony Capital has told the company’s bondholders that it will buy back £80m of its £200m unsecured bonds.
Read the full report here.
