London Dungeon-owner Merlin wizards up £650m refinancing deal

The world’s biggest theme park operator is nearing a £650m refinancing that will involve some of its best-known British attractions.

Sky News has learnt that Merlin Entertainments will announce later this week that it has reached agreement on a deal to replace debt which was due to mature next year with new borrowings secured against assets including the London Eye, London Dungeon and Shrek's Adventure London.

The refinancing comes at a challenging time for the company, which disclosed earlier this year that it was writing down Madame Tussauds' valuation by more than £250m in response to falling attendances at the famous 190-year-old attraction.

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Merlin is jointly owned by Blackstone and the investment arm of the family which controls the Lego empire.

They took the company private from the London Stock Exchange in 2019 in a deal worth nearly £6bn.

Last year, the company hosted 60.5 million visitors to its sites around the world, down from 62.8 million the previous year.

Banking sources said the latest debt refinancing would provide clear medium-term financial visibility for the company.

The deal is expected to be announced alongside Merlin Entertainments' half-year results on Thursday.

Its precise value was unclear, but earlier reports said the company had 2027 maturities worth between £600m and £650m.

The identity of the providers of the new debt was also unclear on Tuesday morning.

Merlin Entertainments has an enviable portfolio of assets, including Legoland, Chessington World of Adventures and Alton Towers.

Last year, it examined a plan to sell a group of its UK-based Sea Life visitor attractions but shelved the plan after failing to land sufficiently attractive bids.

The company has embarked on efforts to instil new impetus into its development pipeline, announcing a partnership with Warner Bros. Discovery Global Experiences to create the world's first LEGO Harry Potter land.

"Our position as the partner of choice for owners of the world's most beloved brands is confirmed by Mojang Studios working with us to build the first ever Minecraft accommodation, and Warner Bros. Discovery Global Experiences helping us create the first ever Harry Potter accommodation," Merlin Entertainments chief executive Fiona Eastwood said earlier this year.

"We have turned a corner and are firmly on the path to improved profitability and sustainable growth.

"Merlin is now a stronger, more disciplined and more resilient business.

"Transformation will not be linear, but our direction is clear.

"We remain focused on delivering strong sustainable earnings, robust cash flow, and disciplined capital deployment.

"With a leaner cost base, a clearer operating model, and an exceptional team, we are confident in our ability to deliver long-term value as we pursue our vision to become the world's most loved family escape, bringing every family closer through play."

A spokeswoman for Merlin denied that the refinancing had been concluded but refused to comment further.

PJT Partners, the investment bank, has been advising Merlin Entertainments on the deal.

(c) Sky News 2026: London Dungeon-owner Merlin wizards up £650m refinancing deal