The second-largest operator of visitor attractions after Disney, Merlin is offering a high interest rate on a five-year bond secured on assets on Friday at a yield in a range of 7 percent to 7.25 percent, according to reports.
In its prospectus, Merlin said that only nine of its 130 venues were currently open. It predicted it would run out of liquidity by the third quarter in a worst-case scenario. With a successful bond sale, that would be pushed out to 17 months of survival.
Last October, Merlin offered an unsecured bond with a 4.5 percent yield and a three-year maturity. Investors in the new secured bonds will be paid before Merlin’s October bonds.
Merlin was acquired by Lego, the Denmark-based toy giant, for $6 billion in 2019.
Lego is a privately held company still controlled by the Kirk Kristiansen family, which founded it in the 1930s. Kirkbi, the family’s investment arm, had already owned 30% of Merlin.
In addition to Legoland, the company operates the Madame Tussauds wax museums as well as Peppa Pig World of Play and the Coca-Cola London Eye.