Titan Europe 2007-1 (NHP) Limited - Irish Stock Exchange

Titan Europe 2007-1 (NHP) Limited Collateral and Structural Term Sheet 1 st May 2007
Operator Group Overview
Southern Cross Healthcare Group PLC
Overview
Southern Cross Healthcare Group PLC (“Southern Cross”) is the largest provider of care home services for the elderly (by number of
beds) and a major provider of specialist services for people with physical and/or learning disabilities throughout the United Kingdom,
with circa 6% of market share.
The group's care homes for the elderly operate under two distinct brands: Southern Cross Healthcare and Ashbourne Senior Living,
both of which provide homes with a broad range of residential personal services and nursing care services for elderly people with
physical frailties and differing forms of dementia.
−
−
Southern Cross Healthcare is a brand focused on local authority-funded residents. Ashbourne Senior Living, a developing brand,
focuses on self-funding residents. Currently, the group is re-branding some care homes as Ashbourne Senior Living facilities.
The group's specialist services operate under the Active Care Partnerships brand and provide long-term care services for people
with physical and/or learning disabilities and younger people with complex forms of challenging behaviour.
As at 1 October 2006, the Group operated 580 homes across its brands with a total of 28,917 beds:
Brands Overview as at 1 October 2006 (including managed portfolio)
Brand Number of Homes Number of Beds Fee Income (£m)
Home EBITDAR Before
Central Costs (£m)
Southern Cross Healthcare 466 24,027 481.6 142.8
Ashbourne Senior Living 72 3,974 94.0 38.2
Active Care Partnerships 42 916 35.3 8.6
Total 580 28,917 610.9 189.6
Source: Annual Report and Accounts 2006, Southern Cross Healthcare Group PLC
As of 1 October 2006, the group's average occupancy rate was 91.0%.
The key aspects of Southern Cross’ proposed business model are to:
−
−
−
Continue acquiring and developing modern, purpose-built care homes in areas of high demand with a plan to add circa 1,000 beds
to the group portfolio by December 2007;
Maintain commitment to the long-term care market, focusing on growth in both core and specialist care divisions; and
Utilise its core sale and leaseback financing strategy to fund continued growth.
History
Southern Cross was incorporated in 1996 and has grown significantly through an aggressive acquisition and consolidation strategy,
making it a leading consolidator in the UK care home sector in terms of acquired beds. Since 2001, the group has acquired nine
portfolios of care homes and specialised accommodation, growing from 5,966 beds (March 2002) to 28,917 beds (October 2006). The
majority of this growth has been achieved through two large corporate acquisitions: (1) Highfield (late March 2005; 186 care homes and
circa 8,000 beds), and (2) Ashbourne (November 2005; 193 elderly homes and over 10,000 beds).
In July 2006, the group was listed on the London Stock Exchange, raising circa £175.0 million, and entered the FTSE 250 index in
September 2006.
Homes
Southern Cross operates its care homes across the United Kingdom:
NEITHER THIS DOCUMENT NOR ANY COPY HEREOF MAY BE SENT OR TAKEN OR TRANSMITTED INTO THE UNITED STATES OR CANADA OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR CANADA OR TO ANY U.S.
PERSON (WITHIN THE MEANING OF REGULATION S UNDER THE US SECURITIES ACT OF 1933, AS AMENDED) OR CANADIAN PERSON EXCEPT TO A LIMITED NUMBER OF QUALIFIED INSTITUTIONAL BUYERS AS DEFINED IN RULE 144A UNDER THE
U.S. SECURITIES ACT OF 1933, AS AMENDED. THIS DOCUMENT IS BEING FURNISHED TO YOU SOLELY FOR YOUR INFORMATION, IS CONFIDENTIAL TO CLIENTS OF CREDIT SUISSE, AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY
OTHER PERSON. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO PURCHASE,
ANY SECURITIES. ANY SUCH OFFER OF SECURITIES WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS OR OFFERING CIRCULAR PREPARED BY THE ISSUER WHICH COULD CONTAIN MATERIAL INFORMATION NOT CONTAINED
HEREIN, AND TO WHICH THE PROSPECTIVE PURCHASERS ARE REFERRED. IN THE EVENT OF ANY SUCH OFFERING, THIS INFORMATION SHALL BE DEEMED SUPERSEDED, AMENDED AND SUPPLEMENTED IN ITS ENTIRETY BY SUCH
PROSPECTUS OR OFFERING CIRCULAR.
Page 26