BMI Healthcare

BMI Healthcare

BMI Healthcare Limited (“BMI Healthcare”), one of the UK’s largest private hospital operators, is pleased to confirm the previously announced transfer of ownership of BMI Healthcare to Hospital Topco Limited (“HTL”), the parent company of the landlords to 35 of BMI Healthcare’s hospitals.

As a result of the transaction completing, BMI Healthcare has received a capital injection of c.£60 million from its new owners, HTL, a rent reduction of £65 million per annum from the 35 HTL-owned hospitals and an extension of its senior banking facilities (a drawn £85 million term loan and an initially undrawn £30 million RCF, with headroom for up to a further £20 million RCF on top) for a further five years to 2023. The transaction will also result in obligations in excess of £500 million being extinguished from the BMI Healthcare group’s balance sheet.

This major re-capitalisation of BMI Healthcare is transformational for the business and will, as previously announced, enable a £250 million capital investment programme to be implemented over the next four years. The capital investment programme will deliver new equipment to hospitals and accelerate the reconfiguration and refurbishment of the Group’s extensive estate and will underpin the continued delivery of excellent patient care.

Commenting on the agreement, Dr Karen Prins, CEO of BMI Healthcare said:

“I would like to thank all parties involved in the transaction. This major recapitalisation of the business has already allowed BMI to start to deliver new equipment and will provide further infrastructure for our consultants and staff to continue to provide the very best care to our patients. The new investment, together with the current structure and facilities BMI has in place, will enable us to strengthen our market leading position, and we are very excited about the future.”