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Red Oak Taverns recapitalises, raises significant capital for growth

Mar 16, 2022

Red Oak Taverns has completed a recapitalisation of its business, providing significant additional capital to enable it to continue its ambitious acquisition programme. The transaction includes a debt refinancing with Hayfin Capital Management, a leading European credit investment firm with €23bn in AUM that has invested over €30bn of capital across more than 420 companies since its inception in 2009. The loan was provided via Hayfin’s Direct Lending strategy, which invests in loans to strong European middle-market companies as a long-term partner to support their organic and acquisitive growth ambitions.

Speaking about the recapitalisation, co-founder and CEO of Red Oak Taverns, Mark Grunnell said, “This refinancing is a further step change for Red Oak and creates a platform for us to enter the next phase of our evolution and to grow the business significantly with our existing major shareholders. We have steadily built a relationship with the Hayfin team over the last eight years, and we are delighted to complete this milestone transaction to allow us to work together on the next stage of our journey.”

The recapitalisation also provides the opportunity for some long-term shareholders to exit the business, whilst also providing for remaining shareholders to increase their individual holdings.
Red Oak Taverns completed five portfolio acquisitions in 2021, comprising 34 pubs and recently completed a further purchase in March 2022. Since 2016, Red Oak Taverns have been clients of OakNorth Bank, who became its sole lender in 2018 enabling it to grow the estate from 160 to 206 pubs. OakNorth will be fully repaid from the refinancing.

Grunnell added, “OakNorth has been instrumental to the growth and success of Red Oak Taverns. It has provided funding since 2016 and has assisted the business through the difficult Covid restrictions. We would like to thank them for their considerable support”.

Red Oak Taverns balance sheet remains strong, despite providing significant financial support to its tenant partners through the Covid restrictions, and the company has now embarked on its largest investment programme to date for its current pub estate in 2022.