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19 May 2010 07:00
19 May 2010
Southern Cross Healthcare Group PLC
REVISION TO BANKING ARRANGEMENTS
Southern Cross Healthcare Group PLC ("Southern Cross" or the "Group") is pleased to announce that it has consolidated its banking arrangements into a revised £50 million revolving credit facility (RCF). This revised facility replaces all of the Group's existing bank facilities and reduces the number of Syndicate lenders from eight banks to two. The bank borrowing transferred to this facility, on 18 May 2010, was £10m.
Purpose of bank facility
The facility will be used to issue the £12 million letter of credit rental guarantees, fund working capital requirements and provide more flexibility to address the leases of unprofitable care homes. This capability is a key part of the ongoing New Horizons programme.
Bank facility terms
The revised facility has the following key terms:
- £50 million facility repayable in September 2013
- £3 million amortisation due in September 2011 and £10 million due in September 2012
- reduced annual interest charge of 2.75% over LIBOR which rises to 3.25% depending on the drawn amount
- improvement in the fixed charge covenant from 1.33x to 1.23x
- flexibility to pay annual dividend of up to one-third of adjusted EPS
The Board is pleased with the revised terms of this facility which has extended the maturity by over two years, re-set covenants at a lower level and is consistent with the Group achieving its stated dividend policy.
Enquiries:
Southern Cross Healthcare Group PLC
Richard Midmer +44 (0) 1325 351100
Financial Dynamics
Ben Brewerton +44 (0) 20 7831 3113
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