Four Seasons looks to raise equity from PE

Four Seasons is looking to refinance £780m of debt by September. Reports suggest it will require £10m-£230m to raise new debt at a 5-7x multiple of its £100m EBITDA. It is believed to be looking at a variety of equity providers, including current shareholders and private equity investors.

The care home operator was left excessively leveraged following an aggressive expansion strategy prior to the financial crisis. It managed to halve net debt to £780m in a 2009 debt-for-equity swap, in which RBS took a 40% stake in the company.

Four Seasons, established in the 1980s, operates around 500 care homes in the UK. It employs 30,000 staff and recorded a £506.3m turnover in 2010.

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• Topics
• UK / Ireland
• Refinancing