Healthcare staffing specialist Healthcare Locums (HCL) has announced “substantial refinancing”, which its board hopes will put it on a solid financial footing.

The refinancing, which provides the necessary cash and debt resources for readmittance to trade shares on AIM, is made up of a £60m placing and an open offer of up to £4.25m.

The refinancing is conditional upon the approval of the shareholders at a general meeting. The restoration of trading on AIM of the ordinary shares will take place upon and subject to completion of the refinancing.

Existing shareholder Toscafund has agreed to subscribe £33.6m for 336,375,000 new ordinary shares and (separately from the debt for equity conversion), while ACE has agreed to subscribe £13.16m for 131,625,000 new ordinary shares. 

HCL also announced its results for the year ended 31 December 2010, reporting reduced revenue of £157.2m down from £167.5m in 2009, while gross profit fell to £41.2m from £50.4m in 2009 and adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of £100,000, compared with £15.6m in 2009.

HCL chairman Peter Sullivan says: “We are pleased to have achieved this refinancing in such difficult markets. The board has considered a range of alternatives that would deliver the optimum value for stakeholders and revise the company’s current capital structure to allow a strengthened business to move forward.

“The board believes that the refinancing, if completed, will provide the group with a strengthened balance sheet and additional cash funding for operational initiatives, thereby creating a viable, sustainable capital structure giving it the capability to achieve significant returns.”