KPMG, led by David Madoc-Jones working alongside Steve Hickman and Sam Andrews, advised ExtraCare throughout the refinancing process, which concluded with the charity negotiating a £35 million private placement with BAE Systems Pension Funds Investment Management Limited (BAPFIM). This follows, and partially refinances, the £150 million facility entered into at the beginning of this year with Lloyds, upon which KPMG also advised.
The charity was established in 1988 and currently supports 4,500 older people in 31 housing schemes and villages across the Midlands and North of England. This deal will enable ExtraCare to meet its development aspirations to build seven additional villages over the next three years and will secure its long term stability through planned growth.
Research commissioned by ExtraCare and conducted by Aston University showed that over a 12 month period, total NHS costs reduced by 38 per cent for ExtraCare residents, demonstrating the value of developments such as ExtraCare’s existing and planned villages.
Commenting on the deal, David Madoc-Jones of KPMG Debt Advisory, said: “We are delighted to have advised ExtraCare on securing this refinancing deal. The additional funding will enable the business to fulfil its development pipeline and provide more homes and support for older people aspiring to live independently in high quality, safe and secure retirement communities.
“KPMG continues to advise a number of clients in the not-for-profit, charity and healthcare sectors on accessing the debt markets.”
Chris Skelton, Finance Director at ExtraCare, added: “We are delighted to have finalised the new funding package from Lloyds Bank and BAPFIM. It brings certainty to our future plans and will allow us to progress our ambitious development plans and improve the lives of many older people. We are very grateful for the professional support we received from KPMG throughout the process, without which the deal would not have been possible.”
David Cryer, Senior Portfolio Manager at BAPFIM, commented: “We are extremely pleased to provide this new tranche of funding to ExtraCare, which reflects our commitment to the housing and not-for-profit sectors. We look forward to continuing our excellent relationship with ExtraCare and seeing the charity achieve its near-term growth plans.”
ExtraCare received legal advice from Ed Sunderland at Pinsent Masons and BAPFIM received legal advice from Steve Mackie at Addleshaw Goddard.
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
About BAE Systems Pension Funds Investment Management Limited (BAPFIM) BAPFIM manages three defined benefit pension schemes on behalf of the schemes’ trustees. The sponsor of the schemes is BAE Systems plc. BAPFIM has approximately £16bn of assets under management, of which £7bn is invested in fixed income assets. Amongst other sectors, BAPFIM has provided funding for local authorities, social landlords, higher education institutions and other not-for-profit organisations.