September 17, 2019 / 1:29 PM / a month ago

Parques Reunidos sets out pricing on buyout financing

LONDON, Sept 17 (LPC) - Madrid-based theme park operator Parques Reunidos has set pricing guidance for its €963m-equivalent buyout financing to back its acquisition by Swedish private equity firm EQT.

A €692m term loan B and a US$300m term loan B are both guided at 400bp-425bp over Euribor/Libor with a 0% floor.

The OID is guided at 99.5 for the euro tranche and 99 for the dollar tranche. The deal includes 101 soft call for six months.

Corporate and facility ratings are B2/B-.

Morgan Stanley (sole physical bookrunner on the dollar loan) and JP Morgan are the global coordinators and bookrunners. Santander, BNP Paribas and ING are also involved.

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.

Parques Reunidos is a known borrower in Europe’s leveraged loan and high-yield bond markets, 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 Parques financing comes as another theme park operator also plans to tap the syndicated loan market. UK theme park and attraction operator Merlin Entertainments is expected to launch £3.8bn-equivalent of loans in the coming weeks backing its £5.91bn acquisition by an investment vehicle of Lego’s founding family and private equity firm Blackstone. (Reporting by Prudence Ho; Editing by Christopher Mangham)

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