Holidaybreak has announced a £230 million, three year refinancing deal with a syndicate of five major banks.
The education, leisure, hotel break and activity travel group, which was acquired by Cox & Kings in September 2011 for £312 million, said the deal would support its future growth plans.
Barclays, HSBC, Lloyds Banking Group, The Royal Bank of Scotland and Santander have refinanced Holidaybreak’s existing debt and provided funding for growth.
Barclays, HSBC, Lloyds and RBS have secured a £53.5 million hold each, with Santander joining the syndicate agreeing £16 million as part of the funding package.
The company said it was now holding a marketing leading position in the UK and was expanding across other European markets including Germany and the Netherlands. Although the company has four divisions, the education division has grown to provide more than half of the group’s profits.
Holidaybreak’s finance director, Neil Bright, said: “We are pleased to have put in place a competitive funding structure with a strong group of relationship banks who have supported the company for many years. This has enabled us to establish the required facilities to support our continued growth.”
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.”