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Schroder UK Public Private loans money to Rutherford Health

Schroder UK Public Private loans money to Rutherford Health – Schroder UK Public Private Trust has committed £3m towards an £8m bridge loan being provided to Rutherford Health by its shareholders.  In addition, LF Equity Income Fund has committed to provide a convertible loan facility of £2m.

The loan will accrue interest at the rate of 15% p.a. and will be provided in two tranches of 50% each. The first tranche will be drawn immediately and the second tranche can be drawn down by Rutherford at any time in the next six months subject to certain conditions. As a next step, Rutherford intends to source additional long-term funding to strengthen the business as it grows revenues in its existing cancer treatment facilities.

Mark Jackson has been appointed as the new non-executive chairman of Rutherford with effect from 7 December 2021. Mark worked for many years as a GP practice lead before founding and growing his own successful company. He has also served on the boards of a number of well-known companies in the health and care sectors, including several years as the chairman of Exemplar Health Care, deputy chairman of Allied Healthcare, as well as a non-executive director of UME Group.

Mike Moran stepped down as chief executive officer with effect from 9 December 2021. The intention is for a new CEO with significant operational experience in the UK Healthcare Services industry to be appointed in early 2022. An experienced interim, Sean Sullivan, has been appointed as a chief restructuring officer to bridge the intervening period. Also in the interim, Rutherford intends to appoint a strategic advisory firm to support its development of a growth orientated business plan going forward.

The fund’s stake in Rutherford was valued at £33.9m as at 30 September 2021. The impact of these developments will be considered in relation to the NAV calculation as of 31 December 2021.

[As we have said before, the trust ended up with far too large a position in Rutherford Health because of a peculiar financing arrangement put in place by Woodford Investment Management (WIM) which guaranteed that funds managed by WIM would provide a substantial sum of money to fund Rutherford’s growth. However, in the event, the former Woodford Patient Capital, despite being much smaller than the open-ended fund, ended up being the only fund in a position to meet the commitment. Agreeing to the deal was one of the worst mistakes that the board made (although there were a few others).]

SUPP : Schroder UK Public Private loans money to Rutherford Health

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