Spire Healthcare refinancing
Spire Healthcare group, one of the UK’s leading private healthcare providers, has completed a partial refinancing of its loan facilities through a sale and leaseback of 12 of its 38 hospitals across the UK raising c.£700m. The hospitals have been acquired by a consortium of investors comprising Malaysia’s Employees Provident Fund (EPF), affiliated investment funds of Och-Ziff Capital Management Group and Moor Park Capital. Moor Park Capital also advised the Investors on this transaction.
The proceeds of this transaction, net of costs, will be used to reduce bank debt. Proforma consolidated net debt will fall from approximately £1.4bn to £700m. In its most recent results, for the year ending 31 December 2011, Spire Healthcare reported EBITDAR of £188m and continued to grow strongly throughout 2012.
Following the transaction Spire Healthcare will continue to operate from its 38 hospital sites, 18 of which are subject to long leases and 20 of which are freehold properties.
Bank of America Merrill Lynch acted as sole financial advisor to Spire Healthcare on the transaction.
Rob Roger, Chief Executive Officer of Spire Healthcare said: “We are pleased to have completed this transaction, the entire proceeds of which will be used to pay down debt and support the continued development of our business.
“The fact that we have been able to conclude such a sizeable transaction in challenging market conditions is a testament to the quality of our business and the people who work in it, and a great vote of confidence in the long term prospects for Spire Healthcare and UK private healthcare.”