Five banks and a fund have lined up around £750 million (US$929 million) of debt financing to back Onex Corp‘s buyout of British holiday park operator Parkdean Resorts, banking sources said.
Canadian private equity firm Onex said it agreed to acquire Parkdean for £1.35 billion ($2.25 billion) on December 16.
Bank of America Merrill Lynch, Barclays, JP Morgan, RBC and SMBC have underwitten a £600 million senior leveraged loan, which is due to launch for syndication to institutional investors in January, the banking sources said.
Ares is sole provider of a £150 million of second lien loan.
Total debt will equate to around 6.25 times Parkdean’s around £120 million EBITDA.
Onex was not immediately available to comment. Ares declined to comment.
Headquartered in Hemel Hempstead and Newcastle, Parkdean resorts operates 73 caravan holiday parks across England, Scotland and Wales, selling more than 500,000 holidays and short breaks a year.
By Claire Ruckin (London)
(Editing by Alasdair Reilly)
Photo courtesy of Reuters/Catherine Benson