Haulfryn Group

A family run company, Haulfryn Group has strived to deliver the highest specification holiday and residential parks for over 80 years, all of which encompass beautifully appointed luxury holiday homes and holiday breaks in outstanding locations.

Financial Support

Being a volatile time within the wider economic market, Haulfryn Group – as many others– wanted to mitigate the heightened risk of a downturn in profits and extract themselves from an onerous swap liability. Without action, future capital expenditure was going to be subdued along with the dividends of shareholders which they relied upon.

With the help of Mark Evans, they substantially refinanced the business to help provide peace of mind for the shareholders, cap the liability of the swap and provided further flexibility to undertake capital developments.

Initial Steps

In order to create a bespoke financing arrangement for Haulfryn, one that would provide protection of the shareholders, a lot of research, planning and strategy went into the initial stages to find a solution that was both practical and efficient.

After extensive negotiating with the bank, the following steps and solutions were made – some of which were a first for Barclays at the time.

Flexible Implementation

A £64m facility was installed that had the right flexibility to undertake future capital projects –without substantial associated fees, costs or interest.

Extensive Restructuring

The swap underwent extensive restructuring that allowed for the capping of liabilities and ring-fenced all associated risks.

Separate Security

A £1.9m escrow account was created that was completely excluded from the security of the bank that could be used for the shareholder’s dividends.

The End Result

As a result of Mark’s tireless work, Haulfyrn had the end result of a financing facility that worked for all the stakeholders of the business – not only was the swap liability risk reduced exponentially, but the company was able to embark on an ambitious capital spend plan and the shareholder’s had the additional comfort that their dividends could be potentially paid for at least two years – regardless of business performance.