High street coffee shop chain Caffè Nero has secured a £99 million funding package to refinance existing facilities and to open an additional 50 stores per year.

The deal was led by investment firm Hutton Collins and also included Goldman Sachs European Special Situations Group and Bayside Capital. It consists of mezzanine finance with a payment in kind (PIK) element.

Eric Bellquist, partner at Hutton Collins, comments: ‘Hutton Collins’s investment provides the company with a financial structure more appropriate for its growth ambitions as it continues with its expansion plans and accelerates its roll out, both in the UK and internationally.’

Founded in 1997, Caffè Nero currently has around 440 stores and 3,200 employees. In 2009, the company declared a net profit of around £25.3 million on a turnover of £142.3 million.