RBS may take controlling stake in care homes

FOUR Seasons, the UK’s largest care home operator, yesterday confirmed it was still in talks to refinance its debts amid speculation that lender Royal Bank of Scotland could take a controlling stake in the business.

The firm – which runs more than 500 nursing homes in the UK, including about 60 in Scotland – is looking to refinance its £780 million of borrowings by September.

Chief executive Peter Calveley said he was in talks with existing shareholders – including RBS – and other investors for a potential £250m cash injection that would help to refinance the debt.

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The company, which looks after more than 25,000 residents and has about 30,000 full and part-time staff, increased its number of beds by 40 per cent last year after taking over parts of failed rival Southern Cross.

A spokeswoman for Four Seasons said: “While it is true that the debt markets are not easy at the moment, we have a high level of interest being shown in the group by potential backers.

“The company and its financial advisers are in contact with potential backers who have expressed an interest in investing in Four Seasons.”

Lenders carried out a debt-for-equity swap in 2009 to cut the firm’s borrowings in half. In 2010, the deadline for repaying the remaining debt was extended until September this year.

The spokeswoman added that the Guernsey-based company was continuing to trade profitably and that its profit for 2011 was about £100m.

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