THE ROYAL BANK OF SCOTLAND PLC LAUNCHES £210 MILLION WHOLE
BUSINESS SECURITISATION OF THE PRIORY GROUP
16 July 2003
The Royal Bank of Scotland Financial Markets (RBS)
has commenced marketing £210m of bonds, backed by a whole
business securitisation of the Priory Group (Priory). The bonds
are being issued through Priory Finance Company Ltd. RBS is the
sole arranger, lead manager and bookrunner of the transaction.
The deal securitises the cashflows from Priory’s
portfolio of mental health, rehabilitation and specialist education
facilities. The deal comprises three tranches of bonds, a £127.5m
fixed rate tranche, a £67.5m tranche of floating rate notes
and a £15m tranche of sub-investment grade floating rate notes.
All tranches are expected to be refinanced at the step-up date in
2011.
Ratings on the three tranches are expected to be
A, BBB and BB respectively, by both Standard and Poor’s and
Fitch.
The Priory business comprises thirty-two facilities
nationwide, in the acute psychiatric, secure psychiatric, neuro-rehabilitation
and specialist education sectors, including the well-known acute
psychiatric hospital The Priory, Roehampton.
Priory has been established in the UK since 1980.
It is one of Europe’s leading independent providers of mental
health services and is well placed to capitalise on the growing
demand for independent mental health provision brought about by
increased incidence and recognition of mental illness, capacity
and investment constraints within the public sector and recent policy
changes.
In June 2002, Dr Chai Patel CBE, Chief Executive
of Priory, led a management buy-out of the mental healthcare business
of Westminster Healthcare backed with funds managed by Doughty Hanson
& Co Ltd.
Proceeds from this transaction will be used by Priory
to refinance existing bridge facilities provided by RBS and to fund
capital expenditure, enabling continued business growth.
Receive the aptly named update service from Securitizability.com:
Copyright Securitizability.com 2005 ABOUT US
Disclaimer_____ Contact___
Privacy Statement
|
