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Wagamama Said to Market Debut Bonds to Refinance Buyout Loans

Published on Jan 19 2015 11:58 AM in Restaurant

Wagamama Said to Market Debut Bonds to Refinance Buyout Loans

Wagamama, the UK pan-Asian restaurant chain, is meeting investors in Europe to market its first bonds.

The company is selling £150 million ($227 million) of five-year senior secured notes, according to a person familiar with the matter. The notes will be rated B2, or five levels below investment grade, at Moody’s Investors Service, said the person, who asked not to be identified because the information is private.

Wagamama is seeking to refinance loans that funded its takeover by Duke Street LLP in 2011. The £145 million of borrowings included £90 million of term loans, 25 million pounds of undrawn financing and £30 million of mezzanine debt, according to data compiled by Bloomberg.

Wagamama is meeting investors until 22 January, said the person. Officials at Duke Street were not immediately available to comment on the bond sale.

The average yield on junk-rated notes in pounds has fallen to 5.66 percent, the lowest since Sept. 8, according to Bank of America Merrill Lynch index data.

Bloomberg News edited by HI

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