| CATEGORY: NEWS AND ANNOUNCEMENTS SECTOR: HEALTH CARE EQUIPMENT & SERVICES |
Southern Cross reduces debt further; CEO to leave |
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Thu 04 Sep 2008
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LONDON (SHARECAST) - UK care home services provider Southern Cross Healthcare has completed sale and leaseback deals on a further seven care homes, as it seeks to stave off the possible breach of loan covenants.
Southern Cross will receive a total cash consideration of £20.7m under the deal which will be used, in part, to reduce its B1 and B2 syndicated credit facilities to £33.4m.
The sale and leaseback deal follows the sale and leaseback of nine homes to Daejan Holdings announced at the end of August. Together with the Daejan disposals, today’s deal brings the total amount raised from sale and leasebacks to £51.8m.
Discussions have started concerning sale and leaseback arrangements for the remaining 14 freeholds owned by the company.
Meanwhile, the company is now on the look-out for a new chief executive officer after the current CEO, Bill Colvin, is to step down from the role after the company’s refinancing programme has been completed.
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