Greene King securitization faces default as bondholders face a choice

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By Owen Sanderson
25 Nov 2020

Greene King’s pub securitization Spirit Issuer is expected to default this year, after bondholders declined to waive potential covenant breaches in the same way they did for other pubcos, including the company’s larger, whole business securitization. This will give bondholders the right to enforce security, but it will test creditors’ desire to take over the assets outright.

In a notice on Tuesday, Greene King said that Spirit had breached its debt service coverage covenants in the period ending October 11, which, following the expiry of the cure periods, will trigger a borrower group event of default on December 19.

But the company is likely to ...

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