Major provider Craegmoor Healthcare has refinanced its whole business with a £255m bank facility arranged by the Bank of Scotland.
Craegmoor says the signing of the new facility will provide it with a strong capital base which substantially reduces the company’s ongoing financial obligations and provide greater flexibility to move to the next stage of its development.
The refinancing was completed in spite of adverse market conditions reflecting, among other factors, Craegmoor’s strong and improving operating performance. Rothschild acted as lead financial adviser to Craegmoor.
Craegmoor chief executive Ted Smith said the refinancing deal was a highly significant milestone for Craegmoor and illustrated the tremendous amount of progress that had been achieved in recent years.
“As well as improving the quality of our estate, we have invested heavily in improving our clinical governance and human resource platforms as well as in training programmes for our 6,700 employees,” said Mr Smith.
“There are a number of exciting opportunities to grow the business, both organically and through acquisition, and the refinancing is an ideal platform from which to further strengthen our position as the leading providing or specialist care.”
Craegmoor Healthcare is the biggest independent provider of long term specialist care in the UK with a turnover of about £170m in the full year ending 31 December 2006. It has a portfolio of specialist and nursing care homes, mental hospitals, specialist adult colleges and supported living schemes with more than 4,700 beds across 234 homes. Craegmoor is owned by a group of private investors led by Legal & General Ventures.