Article
Merlin Entertainments Receives Transaction Proposals From Prospective, Existing Lenders for Debt, Liquidity Solutions
By: Harvard Zhang
Merlin Entertainments has received multiple proposals from both existing and prospective creditors to manage its nearly $4 billion debt and boost liquidity, according to sources.
The Blackstone-backed company behind Legoland is evaluating its options, including a deal-away, the sources said. One iteration of a term sheet from existing creditors featured a pari-plus style transaction, they added.
The company’s senior unsecured notes due November 2027 – denominated in dollars and euros – have traded off amid the company’s weakening financial performance. The 7.375 notes last traded in size at 77 cents today, according to TRACE.
On the first-quarter earnings call, management refrained from providing any guidance on its refinancing plans or whether it may consider an option that would impair creditors. It noted that shareholders remain supportive and that the company is actively evaluating refinancing options and continues to monitor capital markets closely with a clear focus on maintaining an efficient and well-balanced maturity profile.
The company completed the sale of its LEGO Discovery Centres and Legoland Discovery Centres to the LEGO Group in February for a cash consideration of £221 million, which provided it with more than £200 million of liquidity, as reported.
Proceeds from the sale were used to repay drawings on the RCF and cover cash burn during the quarter, sources said earlier. The transaction, while signaling shareholder support, was not transformative.
The market has been pricing in a liability management exercise risk, as indicated by stressed price levels for the secured debt. Octus analysis on Merlin’s LME options is available HERE.
Kirkland & Ellis advised Merlin on its original financing package and has been long-term legal counsel to the group, as reported. Some creditors of Merlin Entertainments have consulted with Gibson Dunn as legal advisor and reviewed debt documents, as reported.
An estimate of the company’s capital structure as of March 27 is seen below:
Merlin and Blackstone declined to comment.
This publication has been prepared by Octus Intelligence, Inc. or one of its affiliates (collectively, "Octus") and is being provided to the recipient in connection with a subscription to one or more Octus products. Recipient’s use of the Octus platform is subject to Octus Terms of Use or the user agreement pursuant to which the recipient has access to the platform (the “Applicable Terms”). The recipient of this publication may not redistribute or republish any portion of the information contained herein other than with Octus express written consent or in accordance with the Applicable Terms. The information in this publication is for general informational purposes only and should not be construed as legal, investment, accounting or other professional advice on any subject matter or as a substitute for such advice. The recipient of this publication must comply with all applicable laws, including laws regarding the purchase and sale of securities. Octus obtains information from a wide variety of sources, which it believes to be reliable, but Octus does not make any representation, warranty, or certification as to the materiality or public availability of the information in this publication or that such information is accurate, complete, comprehensive or fit for a particular purpose. Recipients must make their own decisions about investment strategies or securities mentioned in this publication. Octus and its officers, directors, partners and employees expressly disclaim all liability relating to or arising from actions taken or not taken based on any or all of the information contained in this publication. © 2026 Octus. All rights reserved. Octus(TM) and the Octus logo are trademarks of Octus Intelligence, Inc.