As one of the top 10 care home providers in the UK, the client owns a real estate portfolio comprising more than 37 care homes. The client was seeking a refinancing solution that would free up cash flow in the company.
/ The challenge
In order to finance a large acquisition, the client had previously taken an acquisition finance loan. As well as being expensive, the capital amortisation of the loan was the same as the term of the loan. With cash flows impacted by the existing loan, the client wanted to refinance at a cheaper cost and, at the same time, get a loan with a capital amortisation of over 20 years.
/ Our solution
Using his extensive industry contacts, Gautam approached more than 20 commercial lenders, most of which were specialists in care home financing. One of the banks was keen to lend but, due to the large figures involved, only wanted to lend 50% of the client requirements. Gautam identified another lender who could offer the same competitive terms as the first lender. He was able to syndicate the loan for the client including finalising the facility and security agent for the loan.
/ The result
Gautam delivered a new loan with a five-year term and capital amortisation over 20 years. This significantly reduced the overall cost of the funding as well as freeing up cash flow with the client’s business.
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