Food Delivery Brands, the Spain-based restaurant group that manages Telepizza and Pizza Hut, has reached a creditors and shareholders refinancing agreement as part of its strategy to grow the business and secure future expansion.
The debt refinancing involves a close deduction of nearly 240 million euros and the extension of repayment terms through 2028, with an additional injection of 71 million euros.
The operation is in its final stages and is subject to a judicial formalization process. The framework agreement was signed earlier this year and is expected to close in the second half of the year. It is supported by a group of senior bondholders representing more than 80 percent of the total.
Bondholders take control
Upon closing, Oak Hill Advisors, Blantyre Capital Limited, and HIG Capital are anticipated to take a leading role. This would alter the shareholding of Food Delivery Brands, the current owner of the company’s primary debt, including Fortress Investment Group LLC and TREO. AM would assume control of the group and existing shareholders would be fully diluted.
The new shareholders are set to inject fresh funds totaling 31 million euros to safeguard the group’s liquidity while all legal steps are finalized as the company disclosed in a related filing.
Additional support could expand to around 60 million by the end of the process, underscoring the bondholders’ confidence in the company and its prospects. An extra 11 million is planned to be added to existing shareholders after judicial approval of the process.
The debt restructuring agreement includes capitalizing a substantial portion of the group’s current debt, roughly 50 percent, at a discount near 240 million euros, and extending the repayment terms to 2028. This restructuring translates into a projected leverage profile that shows improved EBITDA levels in the coming years.
Creditors have also agreed to renew the temporary suspension on interest payments on premium bonds, first granted on January 16 and extended through July 17, 2023, and subsequently extended to October 16, 2023.
Results presentation
The deadline for submitting 2022 results has been extended to July 2023.
The operation marks a turning point for the group and signals a new, healthier phase. It is expected to affect the 2022 accounts, influence the investments made by existing shareholders, and alter their stake following the refinancing process.
The depreciation noted is purely accounting-related. Reported revenue, measured at constant exchange rates, exceeded 1.3 billion euros in 2022, up 10.4 percent versus 2021, but this figure does not fully reflect the business’s resilience or long-term momentum.
278 million adjustments
While 2022 may show an accounting loss of 278 million euros, the loss is tied to the adjustments for existing shareholder investments and the higher financial burden borne by those shareholders. The loss is expected to shrink sharply after the debt and refinancing are completed.
Excluding these factors, adjusted EBITDA under IFRS16 would be 58 million euros, about 18 percent lower than 2021 due to inflationary effects on operating margins.