26th May 2021

Rutherford Draws Down Remaining £15M Infrastructure Investment

Cancer care group Rutherford Health has said the conditions have been met for it to draw down the balance of £15m from its £40m infrastructure investment agreement with Equitix Investment Management.

The investment is backed by the freehold transfer of the Rutherford Cancer Centre South Wales and supported by other security to be put in place over the group’s other centres. The term of the agreement is over 25 years on normal commercial rates on the expiry of which the group will have the option to repurchase the freehold of the South Wales centre for an agreed nominal sum.

Under the terms of the agreement with Equitix, £25m of the £40m  was payable immediately with the balance of £15m payable following the granting of additional security over the other centres. This grant has now been agreed, enabling the additional funds to be drawn down. The timescale for drawdown was within six months of the agreement being signed. The funds will be received by the end of May 2021.

The proceeds from the investment are being used by the group for further investment in its infrastructure as well as for capital for its development for the medium term.

Rutherford Health chief executive Mike Moran said: “We are pleased to complete the second part to this agreement with Equitix, enabling us to draw down on the balance of £15m. The full investment of £40m strengthens our balance sheet and provides us with the multiple options for our medium term development.

“While everyone has been and continues to worry about Covid-19, in the UK, there are around 450 people dying from cancer every day and survival rates are going backwards. Following this financing, we can focus our energies on driving the business forward – all our sites are fully operational and we are determined to help doctors and patients alike tackle the backlog in cancer diagnosis and treatment.”

Grant Thornton is Rutherford Health’s corporate adviser.