Four Seasons Health Care announced this morning that H/2 Capital Partners is to provide up to £70m in funding to help the care home operator stabilise its operations.

The new facility will increase Four Season’s loan from £40m to £70m with interest at LIBOR+3.75%. This compares to an interest rate of LIBOR+6.00% on the company’s existing loan.

H/2 has also indicated that it is open to considering interest from the company’s other existing creditors to participate in the facility.

The move follows Four Seasons and H/2 agreeing a standstill agreement at the end of last year which saw the former default on its December interest payments, after months of speculation that it was in danger of going into administration.

As part of the new deal, the standstill agreement has been amended to include a revised set of restructuring milestones agreed by Four Seasons and H/2, including the closing of the facility on or before 7 March 2018, and a mutual agreement on restructuring terms on or before 16 April 2018.

The amendments further extend the forbearance period’s long-stop date to 1 June 2018.

Four Seasons chairman Robbie Barr said: ‘We are very appreciative of H/2’s willingness to consider expanding its already substantial commitment to Four Seasons Health Care and for the continued support of all parties in pursuit of a consensual agreement.  Working together to close the facility over the next two to three weeks, we believe that this incremental liquidity and initial steps toward a revised governance structure lay the foundation for a consensual restructuring that benefits all stakeholders, and in particular provide continuity of care for our residents.’