An inventive new structure has enlivened the whole business securitisation (WBS) market, with a £1.02bn ($1.62bn) multi-tranche transaction from UK leisure company Center Parcs. The architect of the deal, which was the first in Europe to include a high yield element, was Royal Bank of Scotland.
While WBS has had its problems in the US, it has found a natural home in the UK, where the law is more accommodating to its creditors’ claims. Nonetheless, Center Parcs, whose four UK forest villages cater for short break holidays, is an unusual candidate. The structure is more often associated with utility and infrastructure businesses, where cash flows are robust and predictable.
