Electra refinances Park Resorts

The refinancing, which is due to complete within the next fortnight, will see Park Resorts' overall senior debt reduced from £353m to £316m. The debt's maturity, which was due in April next year, has been extended to December 2017.

The £145m in debt now held by Electra comprises both a senior debt facility and PIK notes. The refinancing has also freed up £60m in capital, which will be used to improve facilities in the company's holiday parks. Electra has not provided any fresh capital alongside the restructuring of the company debt.

Private equity house GI Partners, which first invested in Park Resorts in March 2007 and retained a stake in the company following Electra's backing last year, has become a minority shareholder as part of the refinancing structure. The company management now holds a significant stake in Park Resorts.

Electra first invested in Park Resorts in January 2012 by acquiring the company's debt held by Lloyds at a discount price of £45.5m. According to the firm's website, Electra then acquired additional company debt in February and August of the same year, taking the value of the firm's total holding in Park Resorts to £69.8m.

Prior to this, in March 2007, GI Partners led the £440m secondary management buyout of Park Resorts with debt provided by Bank of Scotland. As part of GI Partners' buyout, ABN Amro and Close Brothers Private Equity exited the business. Close Brothers had acquired the business in May 2001 for £45.5m, according to unquote" data. ABN Amro had invested in the £105m MBO of GB Holiday Parks in November 2004 and quickly followed this with the bolt-on of Park Resorts for £165m.

Park Resorts has also appointed a new CEO, David Boden. Its previous CEO, founder David Vaughn, is to become chairman of the board.

Company
Park Resorts, founded in 2001, is headquartered in Hemel Hempstead and employs 2,500 staff. The company owns 39 coastal holiday parks in England, Wales and Scotland.

People
Electra chief investment partner Alex Fortescue and investment director Sarah Williams manage the investment in Park Resorts and both sit on the company's board of directors. David Boden is Park Resorts' new CEO.

Advisers
Company - Clearwater Corporate Finance, Chris Smith, Paddy Bamford (Corporate finance).

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• Topics
• Restructuring
• UK / Ireland
• Consumer
• United Kingdom
• Refinancing
• Electra Partners LLP