Palace Entertainment Holdings LLC in Newport Beach has paid down $430 million in debt with part of the proceeds of its Madrid-based parent company’s $600 million initial public offering in April.
Palace owns or operates 22 leisure parks in 10 states—facilities smaller than Disneyland Resort or Knott’s Berry Farm and often focused on one main attraction such as water. Several are in Southern California, but none are in OC.
Fernando Eiroa serves as chief executive of both Palace and its parent company Parques Reunidos Servicos Centrales SA. He splits his time between Newport Beach and Madrid.
The company’s debt, a senior secured note, had carried an 8.75% interest rate and was due in April.
Parques said an aim of the IPO was to give it “financial flexibility to fund future growth opportunities.”
Moody’s Investors Service in New York had rated Palace debt B3, which covers “speculative [debt] subject to high credit risk,” and said it would “withdraw all the outstanding ratings” on Palace “once the outstanding debt is repaid.”
Moody’s withdrew its ratings after the IPO.
Parques said it will seek “two new term loan facilities and a new multicurrency revolving facility.”
—Paul Hughes
