NHP securitisation issue goes ahead

Posted on October 1st, by editor in Caring Times. No Comments

Care sector purchase and leaseback giant NHP launched a £194 million bond issue on November 9. The company currently owns or has contractual obligations to purchase 365 care homes with 18,721 beds, leased to 23 care home operators, at a cost of about £661 million and which NHP values at about £752 million. In recent weeks the company’s ability to raise the £194 million on the bond market was questioned by many in the sector after Advantage healthcare, which leased 26 homes from NHP, went into receivership. Another NHP tenant, Tamaris, sold all its assets in November after running out of cash and failing to secure a £6 million equity injection from major shareholder Omega Worldwide Inc. The bond release is NHP’s third securitisation issue of care home leases and its second this year, having raised £100 million in April 1997 and £265 million in February. NHP chief executive Richard Ellert said the raising of long term debt via securitisation was a core strategy for his company. “This is the third securit

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