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Food Delivery Brands, owner of Telepizza, has sealed a debt restructuring deal with Oak Hill, Fortress, Blantyre and H.I.G Capital, holders of more than 70% of the company’s bonds, which will now take full control. As confirmed by financial sources, this will mean the dilution of the current shareholders, led by KKR through the capitalisation of a large part of the debt – around 180 million euros.
With these advanced negotiations, the group will be able to avoid paying 12 million euros in interest on the bond maturing on 16 January, having signed a waiver (temporary suspension agreement) in this context of debt restructuring with the bondholders.
Food Delivery Brands recorded a loss of 29.6 million euros in the first nine months of 2022, in a context marked by inflation. Although it closed the third quarter of 2022 with sales of 948 million euros, 18% more than in the same period of the previous year, the increase in the cost of raw materials and workers has affected the profitability of the establishments.
Oak Hill, Fortress, Blantyre and HIG will become full owners of the Spanish company, which is also rethinking the terms of its agreement with Yum! to manage the Pizza Hut brand in Latin America. Food Delivery Brands will now focus on becoming a master franchisee in regions such as Spain, Portugal, Mexico, Ecuador, Colombia, Chile and Ireland, with the aim of driving growth in these key markets and will redefine new objectives for Pizza Hut.
