Monday November 18, 2019

Debt Advisory team helps NHS partner double its network

FRP’s Debt Advisory team has advised on the refinancing of an ‘away-from-hospital’ care provider that will see the business double in size over the next 12 months.

Renal Services (UK) Ltd operates 20 state-of-the-art dialysis units across the UK and provides care and support to more than 1,000 NHS patients. The new debt facilities come after the business secured a series of additional NHS contracts that will see it grow its revenues by more than 100 per cent.

Following a competitive process, which was managed by our Debt Advisory team, the new financing structure will enable Renal Services to deliver the construction and fit-out of new clinics over the next 12 months. The refinancing also allows for potential future access to additional funding without the need for complex renegotiation of the facility, supporting the healthcare provider’s future growth plans and enabling it to concentrate resource on securing further tender wins.

FRP were appointed to run a competitive refinancing process that would fully support immediate capex requirements and provide access to further funding capacity in the future should the growth trajectory continue or accelerate with new tender opportunities on the horizon.

Given capex timing requirements, FRP was heavily involved in developing marketing materials to explain the strength of the credit and the quality of Renal Services’ income streams. As a result, we were able to negotiate favourable terms through a combination of drawn term debt, a committed (but undrawn) capex facility, a CID (confidential invoice discounting) line to support short-term working capital requirements and equipment finance to support acquisition of relevant dialysis equipment.

Tom Cox, Partner in our Debt Advisory team in London said: “Quality of service and, crucially, flexibility are at the forefront of NHS tender award decisions and have been key factors in driving the business’ success to date. This new funding provides Renal Services with the headroom to deliver the highest quality of care to an increasing patient population while recognising that it has even greater growth ambitions in the long-term. Given the scale and speed of the new clinic openings, we’re proud to be able to support Renal Services at a significant moment in its history.”

Stefano Ciampolini, Chief Executive Officer at Renal Services, added: “Away-from-hospital treatment plays a vital role in ensuring dialysis patients in communities across the UK have access to the highest quality of care. Our national network of satellite units offers complete flexibility for patients and creates a model with exceptional growth potential. Having the capital available to fund new units is a major boost for us and gives us every confidence of building on our growing status as a partner of choice for the NHS.”