New bonds and borrowing facility for Greene King

June 27, 2008: Greene King has finalised successfully terms for a second tap of its whole business securitisation issuing an additional £350m of investment grade bonds.

This is consistent with its strategy of taking advantage of longer-term, lower-cost bond finance when conditions allow. By doing so, it has introduced high quality pubs from the acquired estates of Belhaven, Hardy's and Hanson's and New Century Inns into the securitisation.

At the same time, Greene King has simplified its bank borrowing facilities to a four-year facility of £400m.

Greene King chief executive Rooney Anand said: "The fact that we have been able to launch successfully and price attractively a tap of a pub securitisation in difficult debt markets demonstrates the quality of the Greene King estate and strength of the Greene King covenant.

"Going forward, the increased headroom and the strength and efficiency of our capital structure give us a platform to continue to invest in the business, to maintain flexibility within our pub estate and to be alive to any additional opportunities to enhance shareholder value."

The bond finance has been arranged and placed by The Royal Bank of Scotland plc.