Schroder UK Public Private lends money to Rutherford Health – Schroder UK Public Private Trust has pledged Â£ 3million for a Â£ 8million bridging loan to Rutherford Health from its shareholders. In addition, LF Equity Income Fund has committed to provide a convertible loan facility of Â£ 2 million.
The loan will bear interest at the rate of 15% per annum and will be granted in two installments of 50% each. The first one slice will be drawn immediately and the second tranche may be drawn by Rutherford at any time during the next six months subject to certain conditions. As a next step, Rutherford intends to find additional long-term funding to strengthen the business as it increases revenue from its existing cancer treatment facilities.
Mark Jackson was named the new non-executive chairman of Rutherford effective December 7, 2021. Mark worked for many years as a general practice chief of staff before founding and growing his own successful business. He has also served on the boards of a number of well-known companies in the healthcare and healthcare industries, including several years as President of Exemplar Health Care, Vice President of Allied Healthcare, as well as a non-executive director of the UME group. .
Mike Moran stepped down as Chief Executive Officer with effect from December 9, 2021. The intention is that a new CEO with significant operational experience in the UK healthcare sector will be appointed in early 2022. An experienced interim, Sean Sullivan, has been appointed as a head of restructuring to bridge the gap. In the meantime, too, Rutherford intends to appoint a strategic consulting firm to support the development of a business plan focused on growth going forward.
The fund’s stake in Rutherford was valued at Â£ 33.9 million as of September 30, 2021. The impact of these developments will be examined in relation to the NAV calculation as of December 31, 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 Rutherfordâs 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 Read our guide to Boards and Directors" class="glossary_term">board made (although there were a few others).]
SUPP: Schroder UK Public Private lends money to Rutherford Health
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