Center Parcs kicks off refinancing
Published 13/05/2015 | 02:30
Blackstone Group's holiday resort operator Center Parcs is lining up a possible debt refinancing, despite being in the market for a buyer.
Last month Center Parcs announced it will spend €200m building its first holiday village in Ireland, in Ballymahon, Co Longford.
The huge leisure resort will cater for up to 2,500 guests and is due to open by 2019.
The group already operates five UK resort sites where the focus is on outdoor activities, including under huge weather-proof domes.
In March, Blackstone-owned Center Parcs said it was looking at strategic options including a possible stock market flotation, a sale or refinancing. A sale could value the business at as much as £2.5bn (€3.5bn). Private equity firms and sovereign wealth funds including CVC, GIC and China's Wang, Guo as well as Canadian real estate group Brookfield Property have all been named in the press as potential bidders, though Blackstone had also indicated a debt market refinancing could be on the cards instead.
Center Parcs has now begun a process to part-refinance debt with new secured bonds totalling £490m, according to a Bloomberg report citing presale reports published by S&P, Fitch
Proceeds will go to repay debt linked to a new resort opened last year, and a deal would raise Center Parc's total debt to £1.21bn, Fitch said.