Moor Park Capital Partners, the private investment firm, has led a consortium including very large institutional investors based in Malaysia and the US in a £700 million (€835 million; $1.1 billion) sale and leaseback transaction.
London-based Moor Park said the deal involved 12 hospitals, operated by Spire Healthcare, the second largest private hospital provider in the UK. The deal will help Spire to refinance part of the debt against 12 of the 38 sites, the firm added.
Jagdeep Kapoor, partner at Moor Park Capital, called it a complex transaction executed on a non-discretionary basis for its pool of investors, with the deal being typical for Moor Park in that it is a long term sale and leaseback of assets let to a single tenant.
“For our consortium members, we have created a transparent, asset-backed, fixed income style, inflation protected investment where all covenants are well covered,” he said. “For Spire Healthcare, we have delivered an innovative solution, with low leverage, which enables them to inject over £700 million of new capital into their business and to halve their pro forma consolidated net debt, despite the challenging market conditions.”
Rob Roger, chief executive officer of Spire Healthcare, explained how the entire proceeds would be used to pay down debt and support the continued development of the business.
Spire Healthcare was formed in 2007 when private equity firm Cinven bought BUPA Hospitals and then bolted on Classic Hospitals and Thames Valley Hospital in 2008.