Shearman & Sterling is advising private equity firm Advent International and its portfolio company The Priory Group on the financing for the latter’s acquisition of Craegmoor Group Limited. The financing comprised a high yield bond offering of £206 million of 7% senior secured notes due 2018 (the “additional senior secured notes”). The high yield bond offering was issued under an indenture dated 3 February 2011 pursuant to which Priory initially issued £425 million of the same notes. The net proceeds from the issuance and sale of the additional senior secured notes are being used to re-finance existing debt of Craegmoor as part of Priory’s acquisition of Craegmoor.

Priory is Europe’s leading independent provider of care for mental health conditions, psychological and psychiatric services, including condition management programmes, secure, forensic and step-down services, specialist education, complex care, neuro-rehabilitation services, fostering and care homes.

Craegmoor is the UK’s leading independent provider of support for people with learning disabilities, autism, complex needs, and mental health problems, as well as older people.

The Shearman & Sterling team of lawyers in the firm’s London and New York offices advising on the high yield bond offering is being led by London capital markets partner Jacques McChesney. He is being assisted by associates Trevor Ingram, David Plattner, Marwa Elborai and Richard Porter and trainees Michelle Gilmore, Kate Kimpton and Alexius Chong. Finance partner Caroline Leeds Ruby led the team advising on matters relating to Priory’s existing revolving credit facility, assisted by associate Camilla Hunter and trainee Ben Burton. Partner Clare Breeze, associate Lucy Keeble and trainee Henry Ovens advised on real estate-related aspects of the transaction. Partners Iain Scoon and Bernie Pistillo and associates Shiu-Kay Hung and James Leslie advised on tax aspects of the transaction.