London, 10 June 2009 - Europe's leading independent provider of mental healthcare and specialist education services the Priory Group has agreed a £58.4million refinance deal with The Royal Bank of Scotland (“RBS”) as the first stage of an anticipated three-year refinancing package with the bank to support the business’ continued expansion.
The Priory Group is renowned for its innovative mental health and specialist education services with an excellent track record of treatment outcomes. It was created in 1980 with the purchase of the Priory Hospital, Roehampton by an American healthcare company. Over the following decades the Group acquired more hospitals and diversified its offering into acute psychiatric services, secure services, specialist complex care and neuro-rehabiltation services. In 1993 the Priory Group moved into specialist education services with the purchase of Jacques Hall Foundation, then an adolescent therapeutic community, in Manningtree, Essex.
The Priory Group continues to grow organically and through acquisition, and today operates over 50 hospitals, schools and care homes throughout the UK. This growth is poised to continue after securing this recent refinance package and RBS and Priory are currently working together to secure additional funding to help support their strategy to consolidate the sector.
RBS have structured a competitive £58.4million refinance package facility to assist CEO Philip Scott’s plans for expansion. Priory has already launched a new care homes division with plans for 2,000 beds by 2012 and is also planning to move into Republic of Ireland. The Group has also expressed an interest in the takeover of its rival Four Seasons.
Commenting on the deal, Philip Scott, Chief Executive Priory Group said:
“ We are very pleased to have completed phase one of our refinancing with RBS. They have been major lenders to the UK healthcare sector for very many years and I am delighted to be working with the RBS team again to further develop and grow our business.”
Nick Fawdrey, Director , Corporate Leveraged Finance at RBS, added:
“We are delighted to be working with the Priory Group to structure the first stage of the refinance deal. Already recognised as the UK market leader in the fields of independent mental health and specialist education provision, the Group has ambitious plans for expansion and the funding in place provides a platform to broaden its commitment to the sector.”