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JP Morgan Facility Announcement

4th Jun 2013 07:00

RNS Number : 1686G
NMC Health Plc
04 June 2013
 



 

 

 

NMC Health plc

 

Replacement Term Loan Facility

 

 

 

4th June 2013 - NMC Health plc (LSE:NMC) ('NMC' or the 'Company'), the leading integrated healthcare provider operating across the United Arab Emirates, today announces that the NMC group (the 'Group') has completed a US$225m replacement term loan facility agreement (the 'New Facility') with a number of international and regional banks headed by JP Morgan.

 

The New Facility:

1) refinances a number of the Group's primary loan facilities into one consolidated loan with extended maturity;

2) provides further headroom for extra facilities should they be required for fresh opportunities in NMC's business; and

3) is expected to provide a benefit of approximately US$2m per annum on average to the Group through lower financing costs, after taking into account a possible one-time release of existing facility deferred transaction costs in 2013.

 

Existing term loan facility

 

Prior to the Company's IPO in April 2012, the Group entered into a US$150m five year syndicated term loan facility with a range of lenders headed by JP Morgan. The purpose of that loan facility was to raise funds which, alongside the funds raised as part of the Company's IPO, would be used to progress the acquisition of BR Medical Suites and four capital projects outlined in the Company's growth plans in its IPO prospectus.

 

Purpose of New Facility

 

The Company has now completed a new five-year term loan facility which will be used to repay the existing US$150m term loan facility and also a number of other borrowings which the Group had in place prior to the IPO. The New Facility will not raise additional cash funds, but the terms of the New Facility are expected to provide the Group with significant financial benefits.

 

Terms of the New Facility

 

The new US$225m facility, which also has an accordion facility of an additional US$75m, has the following principal terms:

 

·; Facility amount of US$225m.

·; An accordion arrangement providing flexibility for a further US$75m facility available over the next 18 months.

·; Five-year term.

·; Interest rate set for the term of the loan at 3.0% over 1 month USD Libor.

·; Initial 6 month payment holiday period with capital repayments spread over the remaining 54 months of the term.

·; Customary financial covenants provided to the lenders.

·; Cross Group guarantees are being provided under the facility with limited corporate security (and no personal security) being provided.

 

Reasons for the New Facility and benefits

 

The Company has demonstrated a robust performance and good financial management since its IPO. This has enabled it to negotiate improved financing terms with the opportunity to achieve significant cost savings through a consolidated facility and the administrative benefits of servicing just one major facility, rather than several term loans. The Group now has all its primary debt facilities on the same terms and covenants with limited corporate security (only security over receivables and accounts).

 

The total anticipated financial benefit of the New Facility, including rolling up of other loan arrangements, is an average estimated total annual saving of approximately USD $2m. The Group also has the flexibility of additional future finance using the accordion facility, but has no current intention of drawing down this facility.

 

Prasanth Manghat, Chief Financial Officer, commented:

"I am very pleased that the Company has been able to take advantage of its favourable position with the announcement of our new term loan facility. The consolidation of a number of loans will enable us to manage our treasury functions on a more streamlined administrative basis and allow us to set covenants and finance security arrangements on a standardised basis".

 

 

Contacts

Investors:

Prasanth Manghat, Chief Financial Officer

+97 12 617 9465

 

Media:

Brunswick London

Justine McIlroy/Azadeh Varzi

+44 20 7404 5959

 

Brunswick Gulf

Steve Martin Wajih Halawa

+971 5 6696 9232 +971 5 0100 9207

 

About NMC

NMC Health plc group is the leading integrated healthcare provider with operations in the United Arab Emirates. NMC Healthcare commenced operations in 1975 and has grown over that period to become the only private sector healthcare provider with a broad UAE presence. The Healthcare Division currently operates or manages five hospitals, one day-care patient centre, one medical centre and eight pharmacies. The group also operates a significant Distribution business supplying product lines to UAE customers across the Pharmaceutical, FMCG, Food, Scientific and Medical and Educational and Veterinary sectors.

 

In April 2012 NMC Health plc was listed on the Premium Segment of the London Stock Exchange. At the time of its IPO, the group raised funds to enable it to pursue a further growth plan with a number of capital projects for new healthcare facilities in Abu Dhabi and Dubai. NMC Health plc is a constituent of the FTSE250 Index.

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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