McCarthy & Stone successfully completes full refinancing of outstanding liabilities (UK)

McCarthy & Stone the UK’s leading retirement homes developer, announced that it has successfully completed the refinancing of its existing liabilities, totaling £518.9 million (approx. €605.6 million). The transaction significantly reduces the debt burden of the Company by £350 million (approx. €408.4 million).

As part of the transaction, existing shareholders of the Company have subscribed for £367 million (approx. €428.25 million) of new equity. The outstanding £160 million (approx. €186.7 million) of debt has been refinanced by a new five-year loan facility, also provided by existing shareholders, all of whom are committed to supporting the long-term growth of the Company. All proceeds of the capital raised, totaling £527 million (approx. €614.9 million), will be used to pay down McCarthy & Stone’s outstanding liabilities as well as transaction costs. This includes repayment of £510.3 million (approx. €595.5 million)in loans and an £8.6m swap.

With this refinancing successfully completed, the Company will now focus on delivering on its growth strategy. McCarthy & Stone has allocated £1.5 billion (approx. €1.75 billion) to investing in land and build through to 2018. The Company has plans to acquire around 250 sites across the UK over this period and to commence construction of a similar number of new developments.

Jeremy Jensen, Chairman of McCarthy & Stone, commented:

“The successful completion of the transaction is great news for McCarthy & Stone. The refinancing has reduced the Company’s debt significantly and was concluded nine months ahead of maturity, which demonstrates the tremendous level of support we have across the investor group. McCarthy & Stone is now on a much stronger footing and has the financial flexibility to continue investing in the business to fully execute its growth strategy.”

Mark Elliott, CEO of McCarthy & Stone, commented:

“I am delighted by the continued support and faith of our investors. McCarthy & Stone has firmly established itself as the UK’s leading developer of retirement properties for independent living and is in a position of strength. We can now focus exclusively on what we do best – building much needed homes to the very highest quality – and implementing our growth plans, which includes £1.5 billion investment over the next four years.”

Source: McCarthy & Stone

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