Capitol Health Limited (ASX: CAJ), an unrated listed medical radiologist, has announced that it has successfully closed its offering of unsecured 4-year notes. Lead arranger of the transaction was National Australia Bank with FIIG Securities as a co-manager. The issuer raised $50 million and the proceeds from the offer will be used to pay down indebtedness owing under its banking facility agreement.
The notes will be issued by Capitol Treasury Pty Limited, a wholly owned subsidiary of Capitol Health and are expected to settle on the 10th of May 2016.
The senior unsecured notes will pay will pay a coupon of 8.25% and investors are protected by interest cover ratio (must be greater than 2.5x) and net leverage ratio (must be less than 2.5x) covenants which relate to the group's banking facility agreement.
Capitol Health has the right but not the obligation to redeem the notes prior to maturity on the nominated optional redemption dates (10 May 2018 ($103), 10 November 2018 ($102), 10 May 2019 ($101), and 10 November 2019 ($100.50)). The holder may request early redemption of the notes on the occurrence of a change of control ($101). Legal final maturity date of the notes is 10 May 2020.
See information memorandum attached.
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