Kinland, a social infrastructure company providing 351 properties for government-backed care services across the Nordic and Continental Europe region, has negotiated €175 mln worth of amended and extended bank provisions.
Kinland is a portfolio company of German real assets group, Patrizia, and leases its asset to operators who care for more than 28,000 people.
Patrizia explained that a consortium of European banks and institutional debt investors, took part on the amendment and extension of senior bank term facilities helped by an indicative credit rating exercise, which resulted in an investment grade rating for Kinland’s debt and includes new drawn and undrawn debt commitments.
The debt extension ensures maturity alignment with €175 mln of existing longer-maturity senior institutional debt facilities carrying fixed-rate coupons, which are viewed as highly competitive in today’s interest rate environment.
The company has been adding assets. At the end of Q2 2023, it signed agreements to acquire 31 social infrastructure properties from various sellers. The transactions comprised 24 preschool properties and seven care service properties. A large majority of the properties were new or recently built primarily let to operators in their segments on long-term leases.
Wessel Schevernels, operating partner at Patrizia Infrastructure, said: ‘Securing this significant amendment and extension for Kinland against a very challenging economic backdrop is a strong sign of confidence in our social infrastructure portfolio and provides a solid basis to drive its future platform growth.’
‘As demographic changes continue to put huge pressure on our communities, the demand for high quality social care and essential public services will continue to accelerate, supporting our long-term conviction for investing in social infrastructure assets across the Nordics and continental Europe.’
Kinland was advised by Rothschild & Co (financial), Latham & Watkins LLP (UK legal) and Deloitte (Nordic legal).
