Caffè Nero Refinances to Help Growth Ambitions
Caffè Nero, the Italian coffee company, has agreed a new debt financing package. The new debt facilities will support the company’s strong growth objectives, which include pushing forward in International Territories, advancing further in the United Kingdom and opening up new channels such as ‘at home’ coffee.
The new debt package will amount to £100 million of Senior Debt instruments and about £150 million in Junior ranking Debt. There will also be £25 million in capital expenditure and other facilities. The new terms will substantially lower Caffè Nero’s overall average weighted cost of capital per annum.
The Senior Debt Syndicate includes Santander, Rabo Bank, M&G Investments, HSBC and Lloyds. The Junior Syndicate consists of Partners, Avenue and Alcentra.
Gerry Ford, chairman and founder of Caffè Nero, says: “The Caffè Nero brand has outstanding growth prospects. This new debt package allows us to move into some exciting new areas and to continue with our strong store growth both in the UK and abroad.”
Caffè Nero is Europe’s largest independent coffee house group with more than 600 stores across five countries (UK, Poland, Cyprus, Turkey and the UAE). It is a family owned business started in 1997 by Gerry Ford. Ever since opening the first café in 1997, Caffè Nero has been dedicated to two things: creating the very finest handcrafted Italian coffee and providing a warm and relaxing atmosphere in which to enjoy it.
Caffè Nero has a strong reputation for growth and quality. Since its formation Caffè Nero has had 67 of 68 quarters of positive like-for-like sales and EBITDA growth, a record virtually unrivalled by any UK retailer. It has also consistently won awards and accolades for its coffee quality, most recently being voted the best tasting coffee on the high street by Independent Consumer Magazine Which?.
