Nightcap PLC on Wednesday said it has agreed a £10.0 million debt refinancing facility with HSBC Holdings PLC, following ‘a very competitive process’.

Shares in Nightcap were up 6.7% to 15.20 pence each in London on Wednesday morning.

The owner of Cocktail Club, Adventure Bar and Barrio Familia chains said the new debt facility with HSBC will allow it to consolidate various existing debt facilities across its businesses, which total £5.5 million.

The remaining £4.5 million will be use to grow the company’s portfolio in ‘prime’ locations, both in London and other cities across the UK. As well as the 31 open venues and three sites in final stages of fit out, Nightcap said it has an additional 22 premises under offer or in legal negotiations across its brands.

The new debt facility comprises two tranches: a £3.0 million term loan, repayable over the next three year, and a £7.0 million revolving credit facility. The term loan and the revolving credit facility have interest rates payable of 3% and 3.25%, respectively. Nightcap said this represents an ‘improved’ interest rate compared to its previous facilities.

Completion of the new debt facility is subject to the satisfaction of certain customary conditions, it added.

Chief Executive Officer Sarah Willingham said: ‘We have taken our time and at the end of a very competitive process we are delighted to have successfully agreed our group refinancing. We are over the moon to be partnering with HSBC, who have proven themselves as long-term supporters of our sector.

‘Throughout the process the HSBC team showed an appreciation for our team and performance and a deep understanding of the unique opportunity we are capturing with Nightcap.’

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