Four Seasons Health Care’s securitised debt is likely to be refinanced following the purchase of the business by Guy Hand’s Terra Firma.
The private equity investor has agreed to buy the UK care homes operator for £825m, funded by around £300m of equity and £525m of new debt arranged by Goldman Sachs and Barclays, which could be structured as a high-yield bond.
If the deal completes, Four Seasons would repay £725m of debt, including a £600m CMBS, in July, ahead of maturity in September.
Royal Bank of Scotland, which took a circa 40% stake in the business in one of two previous restructurings, is reported to be contributing to the deal by reinvesting the proceeds from the sale.
The bank had been looking at refinancing options including a whole business resecuritisation.
