Aug. 20 (Bloomberg) -- McCarthy & Stone Plc, a U.K. retirement home developer taken over by lenders in 2009, refinanced its debt backed by 367 million pounds ($575 million) of funds from shareholders.
The company’s owners provided the new capital and lent it a further 160 million pounds to replace about 510 million pounds of loans, according to a statement. The five-year facility pays an interest margin of 725 basis points, or 7.25 percent, more than benchmark rates, according to a person familiar with the matter, who asked not to be identified because the transaction is private.
“The refinancing has reduced the company’s debt significantly and was concluded nine months ahead of maturity,” Jeremy Jensen, chairman of McCarthy & Stone, said in an e-mailed statement.
Lenders took control of the Bournemouth, England-based business in 2009 in a deal that reduced cut its debt to about 520 million pounds, according to data compiled by Bloomberg. The company had borrowed more than 1 billion pounds to finance its buyout in 2006.
A spokeswoman for McCarthy & Stone, who asked not to be identified citing company policy, declined to comment on details of the loan.
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