Centre Parcs loan set for extension

A proposal to extend the loan underlying the £750m securitisation of holiday company Centre Parcs looks likely to be approved next month. About 75% of CENTP-2007-1 Class A bond holders have said that they will vote for a two-year loan extension to October 2013.

In return, the borrower, Blackstone Group, has offered an incentives package including suspending dividends and a 176 basis points rise in margins on all five classes of notes. There is speculation that the changes are intended to help pay down the loan ahead of a sale of 75% of the profitable business to institutional investors, via a bond issue structured on the cashflow.