* Combined business has enterprise value of $1.5 billion
* Electra retains 45 percent stake in combined business
LONDON, Sept 1 (Reuters) - British caravan holiday parkoperator Park Resorts will merge with rival Parkdean Holidays ina deal which will create a combined business worth 960 millionpounds ($1.5 billion), Park Resorts' owner Electra PrivateEquity said.
The deal will create a nationwide holiday park operator with73 sites and annual earnings of over 100 million pounds, Electrasaid in a statement on Tuesday.
Electra said that, on completion of the transaction, a new550 million pound debt facility that Park Resorts arranged withBarclays, JP Morgan and Royal Bank of Scotland last month will be used to refinance its existing debtfacilities.
Electra will receive cash proceeds of 106 million pounds,equivalent to 81 percent of its original investment cost. Itwill retain a 45 percent stake in the combined business when thedeal is completed.
In 2012, Electra Private Equity invested 70 million poundsto buy senior debt with a face value of 130 million pounds, inthe then struggling Park Resorts business.
It took a majority stake in the company in 2013 beforeinvesting a further 62 million pounds to fund acquisitions madeby Park in 2013 and 2014.($1 = 0.6494 pounds) (Reporting by Matt Scuffham, editing by Sinead Cruise)
