HPS primes Pizza Express bondholders with new £70m rescue pack

Pizza Express 230x150
By Owen Sanderson
18 Mar 2020

HPS Investment Partners is providing a super senior loan of £70m to troubled UK casual dining chain Pizza Express, paying back borrowing from owner Hony Capital and bank creditors, but pushing the bondholders' 6.625% £465m secured bonds down the recovery waterfall.

The move comes as UK restaurants face unprecedented strain, in the face of the advancing coronavirus pandemic.

The new lending facility will pay 6.75% over Libor, with a Libor floor of 0.75%, and HPS will invest with a 2.5% original issue discount (OID). 

The deal will include a maintenance ...

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