Merlin Entertainments owners of LegoLand, Alton Towers, Thorpe Park, Sealife, Madamn Tussuards and more seeking emergency funding amidst Coronavirus shutdown.
The company is raising €500m in new bonds according to the Financial Times. This urgent funding from debt investors would be used for working capital, operational costs, capital expenditure and paying off the company’s debt interest of £12m a month.
Merlin Entertainments debt pile is above the £4bn mark.
With the closure of all but 9 of its 130 sites this seems like a short-term option for the park.
Hospitality will be the last sector to be opened by the government. This news is a big shock for the industry as Merlin Entertainments are a very dominant figure in the UK tourist attraction market.
Knowing that parks such as Alton Towers, Thorpe Park and LEGOLAND are all at risk here is staggering news indeed.
Merlin Entertainments is also telling investors that “it is not possible to accurately predict the medium- or long-term impact of Covid-19 on our business and our industry”.
“We have a strong 20-year track record as a highly cash generative company, and supportive owners.”
Merlin said in a statement, adding that the debt would “strengthen our balance sheet and provide additional liquidity”.
We’ll be here crossing our fingers very tightly for the foreseeable.
This is certainly not the news we wanted to bring to you today.
Stay safe, wash those hands and take care.
