Holidaybreak, the European specialist holiday and activity group, said it would continue further acquisition following the refinancing of its debt.

The firm negotiated a borrowing of £275m over five years with a syndicate of six banks led by Barclays and Royal Bank of Scotland.

This replaces the Group’s previous facilities, which totalled £255m. After the acquisition of PGL and NST in 2007, the group average net debt last year was approximately £162 million.

Holidaybreak chief executive Carl Michel,  said: “We are delighted that we have been able to arrange this refinancing package on good terms, especially given current debt market conditions. This refinancing package will provide the Group with the flexibility to build on the successes of recent years. The Group remains prudently financed and will continue to be able to consider further acquisitions if and when appropriate.”

International law firm Eversheds has advised Holidaybreak PLC on the refinancing of the companies debt facilities.

Banking partner Nigel Dale, who led the team advising Holidaybreak, said: “This shows that, notwithstanding the lack of liquidity in the marketplace, banks will support good businesses which are run by strong management teams. Completing the deal at this time is a reflection of the strong relationship between the banks and Holidaybreak.”