Southern Cross Healthcare Group plc

On 31 October 2008, Southern Cross Healthcare Group PLC ("Southern Cross" or the "Group") , the UK's largest care home operator for the elderly and a major provider of specialist services for people with physical and/or learning disabilities, announced that it had successfully concluded its debt refinancing.

The Group operates in excess of 730 care homes, providing more than 37,300 beds, and employs in excess of 40,000 staff. The Group consists of three divisions, Southern Cross Healthcare and Ashbourne Senior Living, which provide care homes for the elderly, and Active Care Partnerships, which offers a range of specialist services for people with learning difficulties and mental health requirements.

Canaccord Genuity was engaged by the Group in June 2008 to provide restructuring advice in light of impending covenant defaults and the inability to repay one of its facilities which was due for repayment at the end of June. The Group announced in late July that an extension of current facility arrangements had been obtained until 30 October 2008 in order to facilitate the sale of certain properties and to agree medium term facilities. In the period to 30 October 2008, the Group completed two sale and lease back transactions resulting in aggregate proceeds of £51.8m which were used to repay debt.

As part of the refinancing, the Group has secured an additional £8m increase in its term facilities together with an additional £12m seasonal revolving credit facility for the 2008/09 Christmas and New Year period. The Group's total syndicated facilities now amount to £137.4m and the Group also has a £28.8m bilateral facility for development properties.

Canaccord Genuity was closely involved with Southern Cross in preparing a fully flexible operational and financing model, a banking information memorandum and presentations to the lenders. Canaccord Genuity was also responsible for managing the refinancing process and discussions with lenders. Notwithstanding the well publicised disruption to the financial markets and a syndicate of nine banks, the refinancing was completed without requiring a further extension to the waiver granted by the lenders in July.