By Claire Ruckin
LONDON (Reuters) - UK caravan holiday park operator Park Resorts is set to raise 550 million pounds of leveraged loans via Barclays (LONDON:BARC), JP Morgan and RBS (LONDON:RBS), banking sources said on Tuesday.
The all-senior leveraged loan financing will launch for syndication to institutional investors in September and is expected to be used to refinance existing debt and fund acquisitions, the sources said.
The loans could also fund a dividend payment to shareholders, one of the sources added.
Electra declined to comment.
In 2012, Electra Private Equity (LONDON:ELTA) invested 70 million pounds to buy senior debt with a face value of 130 million pounds, in the then struggling Park Resorts.
In 2013, Electra took a 54 percent stake in the company following a refinancing and debt for equity swap.
Electra invested a further 62 million pounds to grow the business and support the acquisitions of South Lakeland Parks in 2013 and Southview and Manor Park in 2014, and in acquiring a further interest in Park Resorts preference shares in April 2015.
In April 2015 Park Resorts announced that it had made a further acquisition of the Summerfields Holiday Park in Norfolk.