Investec Growth & Acquisition Finance has provided a financing facility to support the management buyout of City & County Healthcare Group, a UK home care provider. The facility has been provided to Graphite Capital, a UK mid-market private equity specialist, to underwrite its backing of the MBO from Sovereign Capital Partners.
Investec Growth & Acquisition Finance (“Investec”) today announces that it has provided a substantial financing facility to support the management buyout of City & County Healthcare Group (C&C), the UK’s fourth largest home care provider. The facility has been provided to Graphite Capital, a UK mid-market private equity specialist, to underwrite its backing of the MBO from Sovereign Capital Partners LLP.
Investec fully underwrote the finance package pre deal, providing security of funding for Graphite. The Investec team then successfully syndicated two thirds of the financing to HSBC and Lloyds (a third each) highlighting the strength of the credit. This was all achieved within a tight deal timetable imposed by the vendor.
The facility is made up of a combination of senior secured term loans, a senior secured revolving credit facility and a senior secured acquisition facility.
Operating across 64 branches, C&C is one of the UK’s largest and fastest growing national providers of personal support services, supplying staff who give assistance to the elderly with daily living tasks. It also serves clients with long-term conditions including learning disabilities, mental health needs and acquired brain injury. The company employs around 6,100 carers providing care to approximately 15,200 service users per annum. Its customer base includes Local Authorities, the NHS and private clients.
This is the latest deal in which Investec has partnered with Graphite Capital, having earlier this year provided finance to support Explore Learning’s expansion plans.
Grant Davidson of Investec said: “Our commitment to Graphite in the form of our underwrite shows we are continually willing to support our key clients in securing ownership of great businesses. A successful syndication shows the strength of the credit and will give the business the financial flexibility to support its buy and build strategy over the coming years. We have worked with Graphite Capital on successful deals in the past and look forward to supporting further deals in the future.”
Mark Hall of Graphite said “The underwritten financing package was a very strong statement of support of the business and invaluable in assisting Graphite. With the support of Graphite and its financing partners, C&C is ideally positioned to capitalise on its excellent potential growth, both organically and via strategic acquisitions”
For further information please contact:
Investec Specialist Bank
Grant Davidson 020 7597 5104
Shaun Mullin 020 7597 4867
Joanna Turney 020 7597 4422
Jason Nisse/Andrew Jones 020 7680 6550
NOTES TO EDITORS:
Investec Growth & Acquisition Finance
Investec Growth & Acquisition Finance is part of Investec Specialist Bank. It works with entrepreneurs, management teams and private equity houses to provide finance to UK mid-market companies. Their flexible solutions cover the entire capital structure offering revolving and amortising senior cash flow lending, mezzanine finance and minority equity on either a standalone or integrated basis. They are a single, empowered and responsive team focussed on making deals happen and building strong relationships with clients.
Investec Specialist Bank
Investec is a specialist bank that provides a diverse range of financial products and services to a niche client base in three principal markets: the United Kingdom, South Africa and Australia, as well as certain other countries.