06 October 2020 by jbchevrel
Stonegate CDS widened to 27% upfront today, on the 5Y contract. It has been a member of XO indices since the series s22 included. The environment remains challenging for bars restaurants and pubs in the UK, with renewed restrictions. Stonegate runs the Slug & Lettuce and Yates bars. They reopened in July and took reopening as an opportunity to issue £1.2BN of debt, to finance its takeover of the UK’s largest pubs operator, Ei Group. These bonds are now trading at 92%. This sector is struggling under the pressure of the 10 PM curfew imposed in England since last month, as well as the “rule of six” limit for gatherings. The UK restaurant debt already saw a heavy casualty this year, with Pizzaexpress auction settling at a dismal 0.125% at the end of last week. Also in the sector, Restaurant Group PLC (owns the Wagamama and Frankie & Benny's chains) reported Tuesday a much widened H1 pretax loss as the coronavirus pandemic hurt revenue, but said that trading since reopening post-lockdown has been very encouraging. They posted a Pre-Tax Loss of £234.7MN for the six months, compared with a £87.7MN loss in the year-earlier period. Revenue was £227.2MN compared with £515.9MN a year earlier.