RSS feedsThe brewer of Banks' Original and Mansfield Bitter ales, Wolverhampton & Dudley, has reduced its pension deficit under FRS17 with a one-off £29m contribution to its final salary scheme.
The FTSE250 group was able to make the contribution after refinancing debt by replacing existing debentures and bank debt with a new £250m bank facility and a £805m securitisation.
'The new financing structure provides greater flexibility for acquisitions, increases the average maturity of the group’s debt and also reduces the cash cost of debt by some £5 million per year,' the pub operator said in a trading statement before it entered its close period.
The combined effect of the refinancing and pension contribution is expected to reduce interest charged in the profit and loss account by £1.5m per year.
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