Mental health centre to expand after £20m funding deal
AN independent provider of services for women and children with mental health problems is preparing for major expansion after agreeing a £20m funding package.
Raphael Health Care’s growth plans include a second development on its site in Rainhill, Prescot, Merseyside.
The funding from HSBC is a combination of refinancing and new lending, consists of a £17.5m term loan and a £2.5m revolving credit facility.
This will allow the £8m turnover business, which also has a hospital in Nottinghamshire, to grow following the second phase of development of the Prescot-based Rainhill Centre. The funding will also help the Rainhill Centre buy 12 extra hospital beds and build a special unit catering to those struggling with learning disabilities and mental health issues.
The expansion is expected to be completed by 2017. Once finished, the Rainhill Centre will offer 31 hospital beds for young people between the ages of 12 and 18 with a range of mental health issues – including a specialist learning disability unit.
Claire Thomson, chief executive said: “Completing the Rainhill Centre has been a critical objective for us. Up until now, an absence of adequate financing options was making this a slow process. We’re grateful to have found a knowledgeable and highly supportive partner in HSBC, to help us deliver on our promise of providing care without compromise and help expand the Rainhill Centre further.”
Jason Trigg, area director, corporate banking at HSBC said: “RHC has ambitious growth goals and a commitment to maintaining quality mental healthcare in the region and across the UK. With a strong reputation in the industry, we’re confident that the further development of the Rainhill Centre will live up to the high standards already set by RHC.”
In addition to the Rainhill Centre, Raphael Healthcare also runs The Farndon Unit in Newark, Notts, which provides low secure mental health services, including accommodation, treatment and active recovery, for female patients detained under the Mental Health Act.
The deal was led by Stephen Brickwood at HSBC. RHC was also advised by Ben Wildsmith and Craig Monks at EY, Emma Hinton and Marcus Pyke at Browne Jacobson, and Taslima Salam and Louise Oliver at Eversheds.
