Lumina Specialist Hospital — Funding Strategy & Structure
The R900 million funding strategy and structure across senior debt, development finance and equity, the gearing, the security package and the detailed use of proceeds.
Section 14 · Business Plan
Funding Strategy & Structure
The R900 million funding strategy and structure across senior debt, development finance and equity, the gearing, the security package and the detailed use of proceeds.
The Project seeks R900m of total funding in a blended structure that
balances affordable senior leverage, patient development-finance capital
and risk-bearing equity, with a reserve to carry the venture through the
ramp.
14.1 Uses of funds
| Use of funds | Amount | Share |
|---|---|---|
| Land & site works | R55m | 6% |
| Building & MEP | R360m | 40% |
| Medical equipment | R210m | 23% |
| IT, HIS & networks | R28m | 3% |
| Pre-opening | R37m | 4% |
| Contingency | R30m | 3% |
| Ramp-up & debt-service reserve | R180m | 20% |
| Total uses | R900m | 100% |
14.2 Sources of funds
Senior secured debt funds the lowest-risk portion of the asset base,
secured against the property and equipment. Subordinated
development-finance (mezzanine) capital sits between senior debt and
equity, capitalising its interest during the ramp to protect early cash
flow. Equity — from the Sponsor, a strategic partner and a B-BBEE
consortium — absorbs first-loss risk.
14.3 Indicative term sheet
| Term | Senior facility | Subordinated (mezzanine) |
|---|---|---|
| Amount | R450m | R150m |
| Pricing | ~11.75% p.a. | ~14.0% p.a. (PIK in ramp) |
| Tenor | Up to 15 years | ~10 years (bullet) |
| Repayment | 3-yr grace, amortise Yrs 4–15 | PIK Yrs 1–3, cash Yrs 4–7, bullet |
| Security | First-ranking over property & equipment | Second-ranking / subordinated |
| Key covenants | DSCR, net debt/EBITDA, reserve | Inter-creditor, subordination |
Indicative terms only, for discussion; final terms subject to credit
approval, due diligence and definitive documentation.
14.4 Conditions & protections
- Funded debt-service and ramp-up reserve sized to a stressed
occupancy ramp. - Cash-sweep above target cash, and dividend lock-up until DSCR and
leverage tests are met. - Milestone-based construction drawdowns with independent technical
adviser sign-off. - Fixed-price construction contract with retention and performance
security. - Step-up covenant profile rather than flat base-case covenants
from Year 1. - Information, board-observer and key-person protections for
capital providers.
The structure assumes senior debt at ~11.75% and committed
subordinated and equity capital that are, at this stage, indicative
rather than secured. Pricing, gearing and the availability of
development-finance capital will be set by the market and by due
diligence. The high closing gearing (~67% debt) leaves limited headroom
for cost overruns or a slow ramp; a larger equity cushion would
materially de-risk the structure.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Lumina Health Holdings (Pty) Ltd.