Four Seasons Health Care and lenders reach agreement on capital restructuring

(29 September 09) Four Seasons Health Care Group today announces that commercial agreement has been reached with the Group's financial creditors for a consensual capital restructuring of the Group's debt.

All of the Group's lenders have confirmed their agreement to the restructuring proposal by signing a formal term sheet and lock up agreement that was circulated by Hatfield Philips International Limited, the Servicer and Special Servicer to the senior lenders of the Group.

Under the restructuring proposal, certain of the Group's lenders will exchange debt owed to them for an equity stake in the business. This will reduce the Group's debt by over 50 per cent to around £780m.

Dr. Pete Calveley, chief executive of Four Seasons Health Care said, "Agreement on the consensual restructuring will give the Group a more robust capital structure and represents a major step forward. The remaining debt matures in September 2010 and we will immediately start work on a long term solution. As always, we will continue to be single minded in our attention to improving our service offering and developing our business."

Four Seasons Health Care has a strong underlying business performance with EBITDA of over £100m. Admissions are at record levels and occupancy has increased to 88.5%. More than four in five of its homes in England, 84%, are rated good or excellent by the Care Quality Commission which positions Four Seasons as one of the highest quality care providers in the country. Similar strong improvements are being seen in Scotland in Care Commission ratings and Northern Ireland, where the Group operates a quality assurance and grading scheme

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