Four Seasons has agreed the basic terms of a restructuring deal with its leading creditor H/2 Capital.
The care home operator said the deal would provide greater financial stability and lower leverage to the benefit of residents, patients and their families.
Robbie Barr, Chairman of the Group, commented: “I am delighted that H/2 Capital Partners have developed a solution to the financial challenges that have been facing the Group for some time. The Board and senior management of the Group are committed to taking the steps necessary to support H/2 in their plans as we proceed to finalising the transfer to new ownership.”
The deal will see Four Seasons ownership transfer to new owner Newco, which will be controlled by creditors.
Four Seasons said H/2 Capital’s investment of new cash equity would approximately half its existing leverage. The deal is expected to be completed on or before July 31 2018 with further details announced around 29 June 2018.
Spencer B Haber, H/2’s Chairman and Chief Executive Officer, commented: “H/2 looks forward to Four Seasons Health Care beginning a new chapter. The restructuring we have proposed is intended to bring enhanced governance, financial stability and equity capital to support the Group’s care homes and independent hospitals.
“At the heart of our plans is our belief that as a responsible private investor, our interests are best served by helping the Group provide high-quality care to the 17,000 residents and patients the Group is honoured to serve.”