Clearwater Corporate Finance’s Debt Advisory and Real Estate team has advised holiday caravan park operator Park Resorts on its recent debt and equity refinance of the Company.
The deal team was led by partner and head of debt advisory Chris Smith with support from director Paddy Bamford.
Park Resorts operates 39 UK coastal holiday parks across England, Scotland and Wales, incorporating both a holiday sales business as well as a highly successful and profitable caravan sales business. With headquarters in Hemel Hempstead, it employs over 2,500 staff during the peak holiday season.
Clearwater led the refinancing negotiations for the company with the banks and equity investors. The refinancing of the existing debt facilities will reduce the company’s senior debt from £353 million to £316 million and extend its maturity to December 2017. The refinancing will also allow £60 million of capital to be made available for investment to improve facilities in existing holiday parks.
Electra Partners and management become the majority shareholders of the company, with existing equity house GI Partners remaining as a significant minority shareholder.
Along with the refinancing, Park Resorts has also announced the appointment of David Boden as CEO. David replaces founder David Vaughan who, following 12 years as CEO, becomes Chairman.
David Vaughan, Chairman of Park Resorts, said: “We are delighted to have completed the refinancing of the business. This will provide a solid platform for the business to continue to grow and for our staff to continue to make amazing memories for all of our customers. During the process Clearwater provided invaluable advice to us on both structuring and then negotiating what was a complicated and unique deal with a large number of stakeholders.”
Chris Smith said: “Park Resorts is a fantastic and very profitable business that in the past has been hampered by its capital structure. This refinancing rectifies that and provides the opportunity for the business to achieve its true potential. We are pleased to have been able to help the company through the process and do our part in securing its continued success.”