Four Seasons: Elli, H/2 Capital ink agreement on £70 million facility

By Caroline Salls

Pittsburgh, March 16 – Elli Finance (UK) plc and Elli Investments Ltd. signed a £70 million super senior facility agreement with H/2 Capital Partners that will assist Four Seasons Health Care in stabilizing operations and ensuring continuity of care for residents, according to a Four Seasons news release.

Four Seasons said the net proceeds from the facility will be used to fund working capital and to prepay and cancel in full the £40 million super senior credit facility made available to it under an Oct. 9 credit facility agreement.

Wilmington Trust (London) Ltd. is the facility agent and Barclays Bank plc is the security agent.

Interest will accrue at a rate of Libor plus 375 basis points.

The facility will mature in 364 days.

Under the governance deeds executed in connection with the facility terms, Four Seasons said it has implemented a number of governance changes to facilitate a consensual restructuring.

Following these changes, the company said independent directors have been named to, and will comprise a majority of, the boards of directors of Elli Investments and Elli Acquisitions Ltd.

In addition, Four Seasons said it has agreed to appoint Martin Healy as a senior professional responsible for facilitating the implementation of a restructuring. Healy will report to the boards of Elli Investments and Elli Finance (UK).

In connection with the facility, the company said the Elli entities have also entered into supplemental indentures for their 8 7/8% senior secured notes due 2019 and 12½% senior notes due 2020.

According to the release, the standstill agreement between the parties includes several remaining milestones that are required to be met on or before specific dates over the restructuring process, including long-stop dates of April 16 for agreement on a restructuring plan and June 1 for the approval of the restructuring.

“We are very appreciative of H/2 expanding its already substantial commitment to Four Seasons Health Care in providing this funding in pursuit of a consensual agreement,” Four Seasons chairman Robbie Barr said in the release.

“This incremental liquidity and the revised governance structure benefit all stakeholders and further promote continuity of care for our residents.”

Four Seasons said it continued to work with H/2 Capital Partners to facilitate an orderly transition and seek agreement on implementation terms for a restructuring on behalf of creditors.

Four Seasons is a Wilmslow, England-based care home operator.

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