Jon Adgemis, Archibald Capital shout senior lenders at pubs roll-up – The Australian Financial Review

It’s musical chairs time in the debt stack of Jon Adgemis’ Public Hospitality Group.
Lance Rosenberg from Gleneagle Securites and former investment banker Jon Adgemis. 
Street Talk understands Adgemis is seeking to hoover up some of the debt held by senior lenders at the pubs and hotels roll-up, as its $450 million refinancing drags on.
Sources said the banker-turned-property-investor has been working with special situations and opportunistic credit investor, Archibald Capital, which owns Public Hospitality Group’s mezzanine debt at the holding company level. Archibald’s managing partner Ben Madsen is running point on the mooted deal.
Adgemis and Madsen are understood to have held meetings with prospective backers to bankroll the tilt. However, it was not known how advanced the talks were or what impact they would have on the broader refinancing.
Attempts to buy out Public Hospitality Group’s senior lenders come three months after Street Talk spotted the outfit seeking a $450 million refinancing, advised by KPMG partner and head of real estate, Tony Moussa. The business’s high debt levels and punchy property valuations had already pricked our sister column Rear Window’s ears.
Sources said on Sunday that Moussa was still on the scene. Of note, the potential refi has attracted significant interest; seasoned property investors, Oaktree Capital and Nomura, were among parties understood to have been in the data room.
Adgemis declined to comment when contacted by Street Talk.
Public Hospitality Group buys unloved pubs and hotels, primarily in Sydney and Melbourne, and now owns about 22 properties. The portfolio includes names like Noah’s backpacker hostel at Bondi Beach and Sydney’s The Strand Hotel.
During the refinancing, prospective backers were told the portfolio’s weighed average interest rate stood at around 12.82 per cent; that less than 10 per cent of the existing facilities have an interest rate of 18 per cent or higher; and that these facilities are for junior debt only.
It’s 100 per cent owned by Adgemis – although investors from a $40 million convertible notes raising in February 2022 would be keeping a close eye on proceedings. That includes Alex Waislitz’s Thorney Investment Group who cornerstoned the round. At the time, Public Hospitality Group was talking about an IPO by September 2022. 
Profit guidance was for $25.6 million in 2023 and $31.3 million in 2025 – from a $17.4 million loss in 2022.
According to Rear Window, the group valued its properties at $750 million in May – higher than the $400 million to $450 million valuation thrown around in its 2022 capital markets trip, at the front-end of the RBA’s rate hike cycle.
Follow the topics, people and companies that matter to you.
The Daily Habit of Successful People

source