UK lockdown puts pressure on pubco securitizations as banks stuck with Stonegate debt

By Owen Sanderson
08 Apr 2020

The coronavirus lockdown in the UK is hurting cashflows to pub company securitizations, potentially putting firms in the firing line for bondholders, who have strong asset security rights in the highly leveraged vehicles. Meanwhile, banks are still sat on the £1.45bn acquisition debt to fund Stonegate’s takeover of Ei Group, which technically ranks behind one of the largest pubco securitizations, Unique.

Pubco securitizations are a purely UK asset class, which before the 2008 crisis, took advantage of the UK’s creditor-friendly legal regime to add extra leverage, secured on the cashflows and hard assets that make up pub estates.


But they were structured with no end point in mind, ...

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