Magic circle firms Freshfields Bruckhaus Deringer and Linklaters have lined up to advise on brewing giant Heineken’s surprise investment in Globe Pub Company’s senior debt.
Under advice from a Freshfields team led by banking and restructuring partner David Trott, Heineken has bought up to 30 per cent of Globe’s senior debt at what is understood to be a sizeable discount. Trott’s team included finance associate Gautham Srinivas.
The deal has seen Heineken buy £60.2m of Globe’s Class A1 securitised debt at an undisclosed discount. The brewer’s stake in Globe’s debt is large enough that it would have a say in the pub company’s future if it looked to restructure its debt.
Globe, which is owned by private equity investor Robert Tchenguiz, was advised by a team led by Linklaters structured finance partner James Harbach.
While Globe is owned by Tchenguiz it is managed on his behalf by Scottish & Newcastle Pub Enterprises, which became part of Heineken when the brewer bought the UK operations of rival S&N last year.
In that deal Heineken and Carlsberg joined forces to buy S&N and split its assets between them. S&N was advised by Linklaters’ corporate partner Matthew Middleditch, while Allen & Overy corporate partners Alan Paul and Alun Eynon-Evans led the team acting for Heineken. Carlsberg was advised by Norton Rose M&A partners Chris Pearson and Andrew Phillips.
Tchenguiz has relationships with a number of City firms but is generally associated with Kirkland & Ellis. Last year former Kirkland partner Raymond McKeeve joined Tchenguiz as an investment professional but has since announced he will join Berwin Leighton Paisner as head of private equity.
McKeeve and former partner Graham White built up a relationship with Tchenguiz when they both acted for his R20 investment vehicle while working at Linklaters. They took the client with them when they left Linklaters for Kirkland in March 2006.