Linklaters advises Caffè Nero on its debt refinancing

Linklaters has advised Caffè Nero on the refinancing of its existing credit facilities. The financing is provided by Carlyle, HSBC and Santander and comprises a six year financing of approximately £330m with additional facilities of £85m available for growth opportunities.

The refinancing represents an important landmark for Caffè Nero in defending a takeover from the Issa brothers’ EG Group who are no longer a holder of any of the Group’s debt. In September last year, Linklaters acted for Caffè Nero in successfully defending a challenge brought against their Company Voluntary Arrangement funded by the EG Group.

In parallel with the refinancing, Linklaters also advised Caffè Nero on an equity raise from existing shareholders, its CEO and founder, Gerry Ford and his friends and family, which was completed at the end of last year. Following the equity raise, Gerry Ford continues as the majority shareholder.

The Caffè Nero Group, founded in 1997, currently operates four brands (Caffè Nero, Coffee #1, Harris + Hole and Aroma) across 1,020 stores in 10 countries. It has 650 Caffè Nero branded stores in the UK and employs 7,700 people across the whole business.

The Linklaters team was led by Banking partner Toby Grimstone together with managing associate Atish Shah.