North East holiday park operator Parkdean Resorts has agreed a refinancing deal worth a reported £600m to fuel its growth plans.
Onex Corporation, the Canadian owners of the Gosforth business, has ploughed the extra equity into the firm, and Parkdean has agreed a refinancing of its senior debt with funds managed by Ares Management’s European Direct Lending. Parkdean said that its agreement with Ares replaces its existing syndicated debt facilities with a single lender and that, with the support of its shareholder Onex Corporation, the group will accelerate its growth plans.
Steve Richards, chief executive officer, said: “We’re pleased to announce Parkdean Resorts’ successful refinancing, and are grateful for the long-term support we have received from our shareholder Onex and lender Ares, which is testament to the strength of our business and the broader outlook for the UK holiday park sector. The business performance is resilient, reflecting our good value self-catering proposition, and we look forward with confidence to a busy summer season, and the acceleration of our growth plans.”
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The deal comes 10 months after the firm’s owners shelved plans for a potential £1.6bn sale of the staycation specialist, amid concerns for the UK economy. The holiday park operator – which employs around 750 people at its Gosforth head office and operates parks in the region including Church Point at Newbiggin-by-the-Sea, Cresswell Towers at Druridge Bay, Sandy Bay in Ashington, Crimdon Dene near Hartlepool, and Whitley Bay– ended talks with potential new owners nine months after launching a sale process, hoping to cash in on the post-pandemic boom in UK staycations.
The refinancing deal comes as Parkdean is aiming for for record bookings, following a successful Easter holiday period in which all of its 66 parks were fully booked. The company is recruiting for 11,000 roles – including 10,000 seasonal positions and 750 permanent roles – in its business across the UK this year, including cleaners, bar staff, chefs, kitchen team members, waiting staff, receptionists, lifeguards and security officers.
The multimillion-pound refinancing deal suggests major investment lies ahead. Last year Parkdean Resorts put in £140m – its largest annual investment – to improve the experiences for guests at its parks with new accommodation, new and upgraded activities and facilities and the installation of park-wide wi-fi.
At the start of the year CEO Steve Richards told The Journal how, with the UK gripped by economic uncertainty, Parkdean Resorts expected to see bookings hold firm in 2023 – saying consumers will prioritise trusted operators who can deliver value-for-money experiences.
At the time, he said: “The sector is facing huge challenges in terms of recruitment and inflation. Given the current economic climate, we expect consumers to begin planning holidays sooner than ever before, prioritising ‘value for money’ and cost-effective deals to make their money go further without compromising on quality.”
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