Talks are progressing over the future capital structure of leading UK care home provider Four Seasons.
Discussions between Four Seasons owner Terra Firma and US investment manager H/2 Capital Partners are focusing on a long-term operating and financial solution for the care home group.
Four Seasons said: “Discussions with key stakeholders are progressing, with the parties actively working to reach an agreement on the long-term capital structure of the business.
“Meanwhile, the group continues to have sufficient medium-term finances for its needs. Quality and standard of resident and patient care is our highest priority and we can’t envisage any scenario that would affect the quality of care for residents in our homes or patients in our specialist care units.”
A spokesman for H/2 Capital Partners said: “For an extended period, H/2 Capital Partners has been seeking to develop a constructive, long-term solution that would provide stability for Four Seasons Health Care, its residents, their families and employees. Over the last six months, H/2 developed a number of proposals that, in its view, would have created a stable future for Four Seasons Health Care, in dialogue with the company’s private equity sponsor, Terra Firma, and other stakeholders.
“H/2 provides senior debt capital and other financial solutions to both public companies and institutional borrowers across a variety of sectors and H/2 did not become a senior secured lender to the company with a view toward taking over its business. H/2 remains committed to working cooperatively with all stakeholders to find a long-term, sustainable solution for Four Seasons Health Care.”
Four Seasons group net debt stood at £513.8m at the end of the third quarter of 2016.
Group revenue was £174.3m, up 9% year on year.
Occupancy rose to 89.6%, its highest level for three years and ahead of Knight Frank’s sector estimate of 88.4%
EBITDA was £19.7m, up by 40% on the third quarter of 2015 with the group holding £51m in cash, up £10m on the previous quarter (see BREAKING NEWS: High occupancy and fee levels boost Four Seasons earnings).