Wizard wheeze: leveraged investors worry about sponsor cash injections

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By Owen Sanderson
26 Mar 2020

Merlin Entertainments, one of last year’s biggest take-privates, has some investors worried about whether it will seek new financing to get it through the coronavirus lockdowns that have shuttered the theme park business’s main sites. Any new financing could weaken the security package for existing lenders and bondholders — though liquidity to get through the lockdowns is essential, writes Owen Sanderson.

The Merlin deal was one of last year’s marquee deals, with £3.1bn of debt backing the £5.9bn take-private of the UK-based group by Blackstone, Kirkbi, and CPPIB.

Lead banks Deutsche Bank and Bank of America syndicated the bond leg of the financing into one of the strongest market ...

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