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Cox & Kings raising £331 mn loan for Holidaybreak buy

Cox & Kings raising £331 mn loan for Holidaybreak buy
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First Published: Thu, Sep 29 2011. 03 22 PM IST
Updated: Thu, Sep 29 2011. 03 22 PM IST
Hong Kong: Tour operator Cox & Kings Ltd is raising a £331 million ($518 million) short-term acquisition bridge loan to back its purchase of British travel company Holidaybreak, a banking source told Thomson Reuters Basis Point.
The acquisition of Holidaybreak, which provides educational and activity trips for school children, would be India’s largest overseas acquisition in the leisure and tourism sector, according to Cox & Kings.
Axis Bank is providing a standby letter of credit to back the loan.
Six to eight banks are expected to join the deal, which pays a return of 200-225 basis points (bps) over Libor, including the interest margin and fees.
The loan is likely to be funded in the first week of October, the source said.
The acquisition and borrowing will be made through Cox & Kings subsidiary, Prometheon Holdings (UK). The bridge loan is expected to be refinanced in January.
Cox & Kings said, on 5 September, the shareholders of Holidaybreak had approved the recommended offer at 432.1 pence per share.
Cox & Kings also has operations in Australia, the United States, Germany, Hong Kong, Greece and Singapore.
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First Published: Thu, Sep 29 2011. 03 22 PM IST
More Topics: Cox & Kings | Holidaybreak | Loan | Tourism | Axis Bank |