Holidaybreak completes £230m refinancing
COX & Kings has completed a £230m refinancing of Cheshire-based travel company Holidaybreak.
The Indian-headquartered company has negotiated a £230m, three-year deal with a club of five banks, consisting of the four major UK high street banks – Barclays, HSBC, Lloyds and Royal Bank of Scotland – and Santander.
The four high street banks have each put in £53.5m, while Santander has contributed £16m.
Holidaybreak was advised on the refinancing by Eversheds banking partner Nigel Dale, assisted by Amy Fairfoull.
Mr Dale said: “Holidaybreak is a valued and longstanding client of the firm, who we have assisted on a number of major transactions over the years.
“This refinancing shows that, notwithstanding the lack of liquidity in the marketplace, banks will support good businesses which are run by strong management teams. Once again, this shows the strength of the North West business and financial community.”
Neil Bright, finance director, at Holidaybreak added: “The Evershesd team are our trusted advisors who once again have demonstrated an in-depth knowledge of our business, the wider leisure industry and the financial community.”
Cox & Kings bought Holidaybreak in a £312m deal which completed in September last year. It funded the deal through a short-term £331m bridging loan, but the new source of funds provides it with longer-term cash.
Andrew Meadowcroft, relationship director at Barclays Corporate Banking in Manchester, said: “Holidaybreak is growing thanks to the astute management team and is well positioned to retain its leading position within its chosen markets.
“This refinance is a good example of the type of strategic and sophisticated transactions Barclays are supporting despite difficult market conditions. It serves as a clear indication we are open for business for quality transactions within the sector.”
Alan Rigby, HSBC’s head of corporate banking in the North West, said: “The joint approach taken by our UK and German relationship managers in this refinancing, coupled with our ability to provide pan-European payments and cash pooling services, underscores the global connectivity and support we’ll be bringing to our ongoing relationship with Holidaybreak.”
Duncan Mayall, relationship director at RBS Corporate Banking in Manchester added: “We have long been supporters of Holidaybreak. Its focus on specialist areas, and involvement in things such as the Government’s Out of Classroom Learning initiative, have positioned Holidaybreak favourably and reflects very well on management’s strategy. We are delighted to have again played a leading role in its financing requirements”.
