13 August 2003
Craegmoor Healthcare, the UK`s largest independent provider of long-term specialist care, has closed its third whole business securitisation of debt. The issue comprised fixed and floating notes totalling £245m issued by Craegmoor Funding (No.2) PLC including £157.5m of AAA-rated paper.
The net proceeds are to be used to repay existing group debt including all the outstanding notes from the previous securitisation, borrowings under the facilities utilised to fund Craegmoor`s acquisitions and mezzanine loans taken out to fund Craegmoor`s acquisition. The new securitisation will provide Craegmoor with a strong capital base and long term platform to support its future growth including its acquisition and development strategy as leader in the specialist care market.
Revenues generated from the company`s ownership of 265 care facilities comprising 223 care homes, 16 independent hospitals and 26 supported living units back the new securitisation. In total these homes represent 4,885 securitised beds, representing 86% of the group`s total bed portfolio.
Craegmoor was acquired by funds managed by Legal & General Ventures ("LGV") in July 2001. Since this time LGV has adopted its traditional ‘buy and build` approach by supporting Craegmoor`s growth organically and through acquisition. Craegmoor has completed 25 acquisitions since LGV`s acquisition and has broadened the scope of its business to include two further areas: Secure Services and Supported Living. The Secure Services business comprises short, medium and long term rehabilitation units as well as forensic, drug and alcohol detox units. The Supported Living business provides supported accommodation and rehabilitation for people with specialist needs with a view to integrating them back into the community.
Craegmoor provides long-term care through 5,654 beds in 289 facilities in the UK. Within the long-term care market Craegmoor is the market leader in specialist care.
