Welcome Break Gets 350 Million Pounds of Loans to Refinance DebtStephen Morris
Welcome Break Group Ltd., a U.K. highway service-station operator, obtained 350 million pounds ($556 million) of loans to refinance its debt.
The company raised 221 million pounds from senior facilities provided by eight lenders as well as 130 million pounds of mezzanine debt, according to an e-mailed statement from the Newport Pagnell, England-based company. The average maturity of Welcome Break’s debt is now 5 1/2 years, it said.
Welcome Break operates 29 sites, including 24 highway service stations, and generated earnings before interest, taxes, depreciation and amortization of 40.6 million pounds in the year to Jan. 31, 2012, according to a company filing. NIBC Bank NV’s European Infrastructure Fund, ING Groep NV and Challenger Life Co. Ltd. bought the company from Investcorp Bank BSC in 2008.
Mezzanine loans are a type of debt used to fund leveraged buyouts and may give lenders a stake in a company.