Punch Taverns announced last week that fixed rate noteholders in Pubmaster Finance Limited would be requested to vote on a restructuring package ahead of a bondholder meeting scheduled for July 25, 2005. The securitization would be increased to GBP3.04 billion ($5.29 billion) in size, to incorporate an additional 663 pubs, including 471 retained from the InnSpired Group acquisition and the removal of 400 lower profit pubs providing approximately GBP150 million of cash.

The refinancing involves the early redemption of all existing floating-rate notes, totaling GBP259 million, and the issuance of an additional GBP625 million of notes offered in three tranches. The class A7 and A8 notes will be backed by a full MBIA wrap. The class B notes are expected to be upgraded to triple-B plus as a result of the introduction a subordinate class C tranche and the improvement of the covenant package. The proposed covenant changes will bring Pubmaster Finance Limited in line with the present ratings of Punch Taverns Finance Securitization.

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