Welcome Break plans £250m sale-and-leaseback

13 February 2004 by
Welcome Break plans £250m sale-and-leaseback

Welcome Break is to sell and lease back eight of its motorway service stations as part of a £386.9m rescue plan.

The eight motorway service areas are to be sold to Rotch Property Group in a deal worth £247.5m.

The deal has been put together by Investcorp, the Middle Eastern finance group that bought Welcome Break from Granada for £476m in February 1997.

Investcorp will also invest an extra £33m into Welcome Break, enabling the company to increase its bank debt by more than £100m.

Just under £350m of the money will be used to buy out bondholders in the company.

A spokesman said: "It makes it a more efficient financing and there will be a smaller debt burden on the company."

Buy this week's Caterer magazine for more industry news and analysis

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking