Whitbread CFO puts bond issue on ice
Christopher Rogers holds off on securing an estimated £1bn of loans as the global debt market remains hostile in the wake of sub-prime mortgage upheaval
Whitbread’s
CFO has said that a possible £1bn debt issue will be put on hold until the
reported turmoil in the global debt markets blows over.
Christopher Rogers said: ‘The propensity to lend to anyone but a sovereign
government is very low at the moment. Our advisers told us that “unless you have
to our advice is that you shouldn’t go at this time”.’
Whitbread would not divulge the exact amount of debt being sought, but
analysts believed that it could top £1bn, the Times reported.
Other corporates including Russian gas group Gazprom have also shelved plans
to secure debt in the last month, blaming the instability of the debt market and
high bond repayments.
Whitbread, which operates the Costa Coffee chain and the Premier Inn hotel
group, was hoping to raise debt secured against its hotels and restaurants.
Further reading:
Corporate restructuring: living in the
bubble