M&G backs UK leisure group

London-headquartered asset manager M&G has provided £30 million (€38.2 million; $49.1 million) of new debt finance to Holidaybreak, an education activity and leisure specialists travel group.

The financing was part of a broader £245 million refinancing by Holidaybreak’s parent Cox & Kings, a leading travel group based in India, with a syndicate of existing lenders which includes Santander UK, Barclays Bank, HSBC, Lloyds Bank and The Royal Bank of Scotland.

M&G’s investment is part of a programme aimed at providing long term finance to UK mid-sized firms, it said in a statement.

James Pearce, head of direct lending, M&G Investments, said: “We are continuing to demonstrate the flexibility we offer mid-sized companies by diversifying their sources of lending and providing finance alongside the banks. Our presence in the deal enabled Cox & Kings to extend the maturity to six years in order for the firm to continue driving their long-term ambitious growth plans.”

The loan is repayable after six years and comes from M&G UK Companies Financing Fund 2, a direct lending fund for companies with a turnover of between £25 million and £500 million, which can lend for up to ten years.

Navneet Bali, group finance director of Holidaybreak, said: “This refinancing reflects the market leading position and strength of Holidaybreak’s education and leisure travel business. We are delighted to have further diversified our lending pool through the new loan from M&G Investments, as well as by the continuing support from Holidaybreak’s relationship banks and to have committed five and six year loan facilities in place.”