Stay Original Company Ltd, which owns and operates five freehold coaching inns throughout the South West of England has more capital to invest in growing its business following a re-financing of its loans to Cynergy Bank.
Cynergy Bank provided Stay Original with a total of £8.7m in financing. This included £4.7m Coronavirus Business Interruption Loan Scheme financing – together with £4m from the Recovery Loan Scheme.
While the Government guarantee is for six years, recognising the significant disruption COVID-19 has caused to the hospitality sector, Cynergy Bank was able to structure the loan on flexible terms including a significant interest-only period and 23-year repayment profile.
The new facility has been used to refinance loans from their existing lenders. It has provided both a significant cost saving to the company and funding to support further capital expenditure plans.
The Stay Original Company bought and renovated its first property in Wedmore in 2011. The company has since added properties in Somerton, Bradford-on-Avon, Shaftesbury and Dorchester. The firm’s pubs and hotel are regular award winners.
Stay Original was advised by Julian Mant, Richard Houliston and Tom Marshall at TLT.
Cynergy Bank was advised by Stuart Parsons of Fleurets, and by Charlotte Round, Adam Hattersley, Will Hollies and the team at Fieldfisher
James Brooke-Webb, Director, Stay Original Company Ltd commented: “Working with Steve and the team at Cynergy Bank has been refreshingly straightforward. As a team, they know and understand hospitality and are an excellent partner for an ambitious group like us. Covid has transformed the landscape, creating many new opportunities for a business like ours to expand, and new lenders like Cynergy Bank will become increasingly influential.”
Steve Crosswell, Relationship Director, Cynergy Bank commented: “Cynergy Bank is delighted to have concluded this transaction with Rob and James of Stay Original. Their group of coaching inns is of a high, premium quality and located in affluent areas. Exactly the kind of assets that are meeting high volumes of consumer demand. We very much look forward to working with them as they add to this high-quality portfolio.”
Cynergy Bank reached a significant milestone earlier in 2021, lending over £200m to SMEs through the British Business Bank’s Coronavirus Business Interruption Loan Scheme (CBILS).
The bank was able to assist both existing and new customers, with 57% of loans going to existing customers and 43% to new customers.