McCarthy & Stone Plans to Hire Advisers Following Debt Trades
McCarthy & Stone Plc, a U.K. retirement home developer taken over by lenders in 2009, plans to hire financial advisers after some of its debt traded hands.
“We are holding a beauty parade for a handful of firms,” said Nick Maddock, chief financial officer of the Bournemouth, England-based company said in telephone interview. “We are looking for advisers with a wide range of different expertise to help us look at all the available strategic options.”
There have been at least three trades of McCarthy & Stone loans in the past three weeks, indicating rising interest among investors, Maddock said. McCarthy & Stone’s term loan A in pounds was quoted at a mid price of 88.25 pence on the pound today, compared with a mid price of 81.5 pence at the beginning of the year, according to Markit Group Ltd.
The developer today reported revenue rising 12 percent to 257.7 million pounds ($416 million) and earnings before interest, tax, depreciation and amortization up 10 percent to 39.9 million pounds for the year ended Aug. 31. It also reported the hire of a new chief executive, Mark Elliott, former head of Arena Leisure Plc.
The results and the prospect of growth has “generated renewed interest in the company in the secondary market. As a result we have met with our stakeholders this week and are starting to look at strategic options,” Chairman Alan Bowkett said in a statement on the company’s website today.
The company had 487 million pounds of loans outstanding as of Aug. 31, Maddock said. The debt is repayable in 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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