Public Hospitality Group seeks debt facility reset
Jon Adgemis’ Public Hospitality Group, which represents almost 22 pubs and hotels across Sydney and Melbourne, is attempting to reset its debt facilities.
The group is currently renegotiating with lenders as it looks to put itself on sure financial footing, following the collapse of a $500 million refinancing with Bain Capital
“Public is working constructively with its lenders to reset the Group’s external debt facilities,” Adgemis said.
“The reset will position Public to continue the development of its portfolio of high-quality accommodation and hospitality sites across Sydney and Melbourne.”
According to The Australian, Adgemis is working with existing backers to put together a debt package, which would see existing debts spread across the operating entities and property assets and rolled into one debt package.
Public is currently paying around 12% on its borrowing to its lenders, with a small mezzanine debt component at 18 per cent of higher.
The lenders are said to be supportive of the company.
“Public remains in close contact with its suppliers and employees and thanks them for their continued support,” Adgemis said.
Adgemis went on a buying spree during the recent pandemic and built up a list of debtors including Deutsche Bank, Gemi Investments, Belgravia Group, Byblos Corporation, Millbrook, Alex Waislitz’s Thorney Investment Group and Lance Rosenberg’s Gleneagle.
Gemi Investments told The Australian, “We continue to believe in the value of Public’s underlying operations and management’s long-term strategy.”
The pub group is trying to complete the rebuild and refurbishment of six venues, which is causing a financial crunch.
The deal with Bain fell over after Bain demanded Adgemis make a significant upfront cash payment before starting due diligence on the deal.
Jonathan Jackson, 11th April 2024
