Caffè Nero has announced the agreement of a new debt financing package.
In a statement, the business said the new debt facilities “will support the business’ strong growth objectives”. These include pushing forward in international territories, advancing further in the UK and opening up new channels such as ‘at home’ coffee.
The new debt package will amount to £100m of senior debt instruments and around £150m in junior ranking debt.
There will also be £25m in capital expenditure and other facilities. The new terms will substantially lower Caffè Nero’s overall average weighted cost of capital per annum.
The senior debt syndicate includes Santander, Rabo Bank, M&G Investments, HSBC and Lloyds. The junior syndicate consists of Partners, Avenue and Alcentra.
Gerry Ford, chairman and founder, said: “The Caffè Nero brand has outstanding growth prospects. This new debt package allows us to move into some exciting new areas and to continue with our strong store growth both in the UK and abroad.”