NMC Health talks $450 million seven-year convertibles with fixed coupon of 1.875%, up 50% to 60%

By Abigail W. Adams

Portland, Me., April 23 – NMC Health Ltd. launched an offering of $450 million in seven-year convertible bonds prior to the market open on Monday with price talk for a fixed coupon of 1.875% and an initial conversion premium of 50% to 60%, according to a company news release.

J.P. Morgan Cazenove is the sole bookrunner for the offering, which is being marketed to qualified investors in the European Economic Area.

The bonds will be issued in principal amounts of $200,000.

The bonds are non-callable until May 22, 2023 and then provisionally callable if the value of the shares underlying the bonds exceeds $300,000 or if 15% or less of the principal amount remains outstanding.

There is a put option on May 2, 2023.

The reference price for the bonds will be the volume-weighted average share price on the London Stock Exchange converted into dollars at the USD:GBP spot rate at the time of pricing, according to the news release.

The bonds will be listed for trade on the open market of the Frankfurt Stock Exchange.

Net proceeds will be used to repay part of the $1 billion bridge facility put in place at the time of the $2 billion capital restructure financing entered into in the beginning of 2018.

The convertible notes will be guaranteed by NMC Health plc, NMC Healthcare LLC and other subsidiaries which guarantee the bridge facility.

NMC Health Ltd. is a subsidiary of NMC Health plc, an Abu Dhabi-based private healthcare operator with an international chain of hospitals.

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