Gala Group has completed a refinancing which has repaid approximately half of the £550m invested by Cinven and Candover when they acquired the company in March 2003. As a result of the refinancing, total debt stands at £945m. All shareholders will retain their existing stakes in the company.
The senior refinancing was led by Merrill Lynch and The Royal Bank of Scotland with mezzanine debt arranged by Intermediate Capital Group.
Gerard Conway of Candover, said: “This refinancing illustrates the quality of Gala’s trading performance and reinforces the ability of the management to deliver excellent results. Gala continues to be a strong investment for Candover.”
Peter Catterall, partner of Cinven added: “A combination of strong strategic direction from the management team and the ongoing development of Gala’s offering to its members has been the foundation of the success of this business. We look forward to working with the management team to build on this success.”