£40m lifeline for Four Seasons
April 17, 2019
Major provider Four Seasons Health Care has been thrown an additional £40m funding lifeline by US hedge fund H/2 Capital Partners, a major shareholder in the group.
H/2 Capital Partners is to increase its financing for Four Seasons from £70m to the maximum amount of £110m and has extended the facility agreement until 3 June.
The care home operator found itself in trouble last year when its owner, private equity firm Terra Firma, failed to pay off a portion of debt it owed to H/2. This led to the hedge fund effectively taking control of the group and a reshuffle of the company’s senior management team that saw a reshuffle of Four Seasons’ management.
The extension and increase in funding will provide continuity of care and operational stability and more time to negotiate a sale of the company. The funding will also cover the costs of creditors and expenses incurred over the course of completing Four Seasons’ restructure.
In a statement, the group said: “We welcome the additional funding by the group’s major creditor H/2 Capital, which can be drawn down as needed, in order to ensure that the group has sufficient liquidity to maintain continuity of a high standard of care for our residents and patients and time to complete an orderly sale process and transition to new ownership.
“We announced in December the group board’s intention to launch an independent sales process as a positive step to put the business on a sound financial footing that is sustainable in the long term. This is in the interests of the people in our care, our colleagues and our stakeholders. The board has been working with advisers to prepare for the launch of a sale and has made good progress and a further announcement will be made when arrangements are completed.”