£245m refinance for Holidaybreak

NORTHWICH-based travel group Holidaybreak has completed a £245m refinancing with a syndicate of banks.

The package, which matures in 2019 and 2020, has been arranged with its existing lenders – Santander, Barclays, HSBC, Lloyds and RBS – and a new member, M&G Investments.

The company previously agreed a £230m three-year deal in 2012.

It said the latest deal would remove legacy acquisition finance debt, reduce finance costs, simplify borrowing arrangements, and diversify the sources of lending.

Holidaybreak chief executive Peter Kerkar said: “The significant improvement in the terms of our borrowing reflects the market leading positions and strength of Holidaybreak’s education and leisure travel businesses. Our strategic plan is on track and we remain excited about the opportunities of these busineses.”

Sacha Balachandran, HSBC North West head of corporate, said: “HSBC enjoys a strong relationship with Holidaybreak and this latest refinance supports the growth of the business. Holidaybreak has a skilled management team and a clear strategic plan to develop its business, so we are pleased to have supported this transaction.”

Barclays’ relationship director Andrew Meadowcroft said: “Holidaybreak continues to grow thanks to a skilled management team and is well placed to retain its leading position within its chosen markets. The latest refinance represents the next step in our long standing relationship and is a good example of the type of strategic and sophisticated transactions Barclays are supporting. It also serves as a clear indication we are open for business for quality transactions within the sector.”

Holidaybreak’s relationship with Lloyds Bank is managed by Jonny Beckwith and Glenn Bemment from the Merseyside Mid-Markets team. They worked alongside Neil Price and Rob McCann of the bank’s North-West based Acquisition Finance team on the deal. Guy Bagshaw of Rothschild advised Holidaybreak on the refinancing.