Bank support enables bars group to plan for the future
Revolution Bars Group has achieved an extension to its debt facilities, which the board believes will provide enough liquidity for the foreseeable future.
The Manchester-based operator of 74 bars trading as the Revolution and Revolución de Cuba brands said that, as announced on April 14, its lenders, NatWest, agreed to increase its revolving credit facility from £21m to £30m until August 31, 2020, following which it would step down to £24m.
NatWest also agreed to waive all financial covenant tests at March 2020 and June 2020.
Subject to final documentation, NatWest has also agreed to further increase the group’s overall debt facilities, utilising the Government’s CLBILS.
NatWest will provide the group with a £16.5m term loan and the revolving credit facility will remain at £21m.
The term loan will mature on June 30, 2023, following which it will need to be repaid or refinanced.
Revolution Bars said its net debt position is currently £22m.
With the revised facilities in place, the board said it is confident that the group will have sufficient liquidity for the foreseeable future, even taking into account the board’s downside COVID-19 trading scenario.
Chief executive, Rob Pitcher, said: “Again, we welcome and are delighted with the additional support from NatWest.
“They continue to act as a true partner to our business and this decisive action will enable us to emerge from this crisis in a financially stable position.
“When restrictions are lifted, we will re-open with much caution – prioritising the health and safety of our employees and guests above all else.
“However, with the security of a stable financial position and underpinned by our young guest base, we believe that the group is well placed to return to good levels of trading reasonably quickly.”
