ABU DHABI: Abu Dhabi’s NMC healthcare provider in a statement said that company has signed a five year loan agreement of $825 million with group of banks that will be used to pay existing debt and fund acquisition.
The facility is divided into two tranches, first, for $350 million, is an amortizing loan and will be used to refinance existing debts of NMC and its subsidiaries and for general corporate purposes.
This part is expected to price initially at one-month LIBOR/EIBOR plus 100/70 basis points.
The second tranche of $475 million is for acquisitions, NMC said, and is a delayed draw-down facility priced at a margin over one-month LIBOR/EIBOR, which may fluctuate as per the loan terms.
Both tranches have five-year terms, are priced in dollars and UAE dirhams and should save the parent company up to $3.75 million annually in interest payments, it said.
“The new facility has been structured as two separate tranches to facilitate NMC’s ongoing strategy of making phased acquisitions that will be accretive to the Company’s underlying business and profitability,” NMC added in the statement.
It did not disclose which banks were parts of the lending syndicate, stating only that these were international and regional banks.
