BMI Healthcare will be boosted by a cash injection of £60m alongside a £65m a year rent reduction following transfer of ownership to its landlords, the company announced today.
Under the newly completed deal, the operating company will transfer to Hospital Topco Limited, the parent company of the landlords of 35 BMI hospitals. As part of a major recapitalisation, its senior banking facilities – consisting of a drawn £85m term loan and an undrawn £30 revolving credit facility, will be extended for a further five years until 2023. The transaction will also result in obligations in excess of £500m being wiped off the group’s balance sheet.
BMI said it would implement a £250m capital investment programme over the next four years to deliver new equipment to its hospitals and reconfigure and refurbish its estate.
BMI Healthcare CEO Dr Karen Prins said: ‘I would like to thank all parties involved in the transaction. This major recapitalisation of the business has already allowed BMI to start to deliver new equipment and will provide further infrastructure for our consultants and staff to continue to provide the very best care to our patients. The new investment, together with the current structure and facilities BMI has in place, will enable us to strengthen our market leading position, and we are very excited about the future.’