Nuffield Health announces Innovative Funding Approach
The agreement demonstrates strong support for the business and its strategic development plans for an integrated approach to fitness, prevention and cure, across hospitals, consumer and corporate fitness and wellbeing markets.
In an innovative move, the leading institutional investors, Pricoa Capital Group, and the Metropolitan Life Insurance Company have provided long-term fixed-rate loans of 10 and 12 years to the charity. Importantly, Nuffield Health still retains control of its freehold asset base, providing it with long-term security and flexibility.
Existing bank lenders Barclays, RBS and Santander were joined by HSBC and Siemens Financial Services and provided 7 year committed bank facilities. Extending the maturity of its bank financing has been an important aim for the organisation, something that lenders were prepared to do on an exceptional basis to support the strategic aims of Nuffield Health.
Nuffield Health Chief Financial Officer, Greg Hyatt, said:
"Receiving investment from a mix of banks and institutional lenders is a first for Nuffield Health, and follows on from the launch of our retail bond last year. As a result, we have been able to secure a diversified lending base and long-term debt funding. By providing this strong refinancing package, our lenders have shown great confidence in our ability to deliver our strategy to help people get healthy and stay healthy."
Michael Berry, Head of Pricoa Capital Group's London Office added:
"The continued growth that Nuffield Health has made in the UK health market over recent years has enabled us to invest in the charity. We believe they operate with a strong strategy and are confident our investment is well placed.”
Francis Burkitt from Rothschild, who supported Nuffield Health through the process, commented:
“Nuffield has market-leading assets and facilities, strong management, a well-established reputation and position in its marketplace, and a clear set of financial policies. All these are highly attractive to lenders. After a competitive process, Nuffield accepted offers for this combination of seven-year bank debt and 10 and 12-year institutional private placements from a mix of leading banks and insurance companies, on very attractive pricing and covenant terms for the charity."
Nuffield Health’s development plans have seen the formation of a strategic partnership with Manchester Metropolitan University, to improve healthcare in the North West of England. It will see the development of a major facility in Central Manchester, incorporating a state of the art hospital, wellbeing and rehabilitation services serving the Manchester and Northwest health economy.
This year also saw the acquisition of nine Virgin Active gyms bringing Nuffield Health a step closer towards achieving its ambition of a national network of fitness and wellbeing facilities.
Both of these expansions underline Nuffield Health's commitment to support more people with an integrated health and wellbeing proposition, improving health across the UK.
Last updated Wednesday 23 March 2016
First published on Wednesday 8 October 2014