LONDON, Sept 11 (LPC) - Banks are showing a select group of investors a €1.16bn debt financing backing Swedish private equity firm EQT’s acquisition of Madrid-based theme park operator Parques Reunidos, banking sources said on Tuesday.
EQT, Miles Capital and Alba are acquiring a 55.79% stake in the company, in a take private transaction, for €631m. Miles Capital and Alba already own the rest of the company so the offer is for the remainder.
Morgan Stanley and JP Morgan are leading the €1.16bn leveraged loan financing, alongside Santander, BNP Paribas and ING.
The financing comprises a €960m term loan and €200m revolving credit facility.
It is being shown to earlybird investors prior to launching general syndication to a wider group of investors shortly, banking sources said.
EQT was not immediately available to comment.
Parques Reunidos is a well known borrower to Europe’s leveraged loan and high-yield bond market, having tapped the markets prior to its IPO in 2016.
Parques signed €787m of loans in July 2007 to back its buyout by Candover Partners, which was taken over by Arle in 2011 after Candover fell victim to the credit crunch. In April 2015, Parques Reunidos announced it had returned to growth after three difficult financial years, with the number of visitors growing for the first time since 2009.
The current financing backing EQT’s acquisition comes as the loan market prepares to receive a jumbo debt financing totalling £3.8bn-equivalent of loans backing the £5.91bn (US$7.49bn) acquisition of UK theme park and attraction operator Merlin Entertainments by an investment vehicle of Lego’s founding family and private equity firm Blackstone.
“Parques Reunidos is out there in earlybird, which is completely crazy as Merlin will be coming out soon too. Two amusement parks at the same time could be a bit much. Merlin is one of the largest in the world and Parques is not,” a syndicate head said.
It is also the latest loan financing backing a public-to-private transaction. Leveraged loan investors are considering investing in £972m of term loan backing British car auctioneer BCA Marketplace’s buyout and a US$2.7bn term loan B that is part of a wider debt financing backing UK telecommunications and satellite operator Inmarsat’s acquisition by a consortium of investors led by Apax Partners.
Editing by Christopher Mangham