Anglian Country Inns Limited, which operates nine pubs throughout Hertfordshire and Norfolk, has secured £3.33m of Coronavirus Business Interruption Loan Scheme (CBILS) financing from Cynergy Bank.
The loan will be used to re-finance existing debt with Barclays, and provide emergency working capital funding which the business needs, because the impact of COVID-19 meant they had to close their pubs in March.
Whilst the Government guarantee is for six years, Cynergy Bank is amortising the loan over a 25-year period. The bank has also provided a £425k CBILS loan to Anglian Country Inns’ sister company, The Farmhouse@Redcoats Ltd, who were already a client of Cynergy Bank, but also required working capital support because of the impact of COVID-19.
The first year of the loans is interest and fee free as the Government pays this to the Bank. Thereafter, Cynergy Bank has provided a further 12-month interest only period before capital and interest payments commence in 2023.
James Nye, Managing Director, Anglian Country Inns: “We were delighted to have completed the CBILS funding of both Anglian Country Inns and our sister-company, The Farmhouse, which together means we are able to protect the business and ensure we come out of the pandemic stronger than ever. Steve Crosswell and the team at Cynergy Bank really understand the sector and were able to structure the deals in a way that gives us breathing space as we look to re-open in the weeks to come.”
Ravi Sidhoo, Managing Director, Cynergy Bank Private & Business Banking commented: “Cynergy Bank is delighted to have concluded this transaction with Anglian Country Inns, buying the firm the valuable time it needs due to the impact of COVID-19 on the hospitality sector. We pride ourselves on working with our clients to understand their business needs and aspirations. With our local, skilled relationship managers, we quickly learn our client’s needs, we understand the market and, unlike mainstream lenders, can deliver certainty at speed. Something that is exceptional valuable in these unprecedented times.”
Cynergy Bank’s Steve Crosswell, Relationship Director, Hospitality commented: “Cynergy Bank is delighted to have concluded this transaction with Anglian Country Inns. The Nye family have built a robust and solid business with high performing assets and they typify all that is good in a family-led business. The impact of COVID-19 didn’t make the transaction a straightforward one, but we were pleased to have been able to utilise the British Business Bank’s Coronavirus Business Loan Interruption Scheme to complete the re-finance and provide much needed working capital support to the business during lockdown. We very much look forward to working with the Nye family in the future.”
The bank was advised by Ed Sandall of Fleurets and James Walton, Susanna Caulfield, Alex Pelopidas and the team at Rosling King LLP.