McCarthy & Stone Plc, a U.K. retirement home developer taken over by lenders in 2009, said it hired Moelis & Co. to explore options for its future after earnings rose.
Moelis will present the review to McCarthy & Stone’s board by the end of January after looking at a “broad range” of strategic and financing options, the Bournemouth, England-based company said today in a statement.
The advisory firm will consult with McCarthy & Stone’s major stakeholders and asked any new shareholders or lenders to make contact. Interest from investors has been rising with at least three trades of McCarthy & Stone loans having taken place recently, Nick Maddock, McCarthy & Stone’s chief financial officer, told Bloomberg News last month.
The developer reported revenue rising 12 percent to 257.7 million pounds ($412 million) and earnings before interest, tax, depreciation and amortization up 10 percent to 39.9 million pounds for the year ended Aug. 31, it said last month. It also reported the hire of a new chief executive, Mark Elliott, former head of Arena Leisure Plc.
McCarthy & Stone’s term loan A was quoted at a mid-price of 93.7 pence on the pound today, compared with a mid-price of 88.3 pence on Oct. 25 and 81.5 pence at the beginning of the year, according to prices provided by Markit Group Ltd. McCarthy & Stone had 487 million pounds of loans outstanding as of Aug. 31, Maddock said last month. The debt is repayable April 2014.
HBOS Plc, now part of Lloyds Banking Group Plc (LLOY), led banks arranging more than 1 billion pounds of loans to McCarthy & Stone to finance its buyout in 2006, according to data compiled by Bloomberg.
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