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Hogan Lovells Advises on £136M Acorn Care Refinancing

16 September 2014

LONDON, 16 September 2014 - Hogan Lovells has advised lenders Barclays, GE Capital, HSBC, Natixis, RBS, Ares Capital and Partners Group on the financing of a £136 million debt package for Acorn Care and Education, announced on 11 September 2014.

The financing comprises a £62 million senior portion provided by the banks, and a £74 million second lien tranche provided by Ares and Partners Group. The proceeds will go towards the company’s expansion plans. Acorn provides specialist professional care, fostering services and education to children and young people with learning difficulties through schools and residential settings across England.

The financing will also provide a dividend for incumbent sponsor Ontario Teachers’ Pension Plan (OTPP), who bought Acorn in 2010 with senior financing provided by Barclays, GE Capital and Lloyds; and junior facilities provided by Ares. OTTP is a single-profession pension plan which invests and administers the pensions of 307,000 active and retired teachers in Canada.

The Hogan Lovells team advising the lenders was led by London banking partners Stuart Brinkworth and Paul Mullen, with support provided by associates Gert Raig and Graham Greenwood.

Commenting on the transaction, Stuart said:
"This is an important strategic transaction for Acorn and for OTPP and we are pleased to have been able to advise both the senior and second lien lenders. This transaction was notable due to the sizeable second lien and our expertise in deals with junior pieces within the senior debt structure continues to make us stand out in the market."

Acorn and OTPP were advised by Linklaters, with partners Daniel Gendron and Adam Freeman leading.

 
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