NMC Health completes replacement loan facility

NMC Health has completed a 225m dollar replacement loan facility agreement with a number of international and regional banks headed by JPMorgan.The new five-year term loan facility will be used to repay a number of borrowings including a $150m five-year syndicated term loan facility which was entered into with range of lenders headed by JPMorgan prior to the company's initial public offering (IPO) in April 2012. The previous five-year loan was used along with funds raised during the company's IPO to finance the acquisition of BR Medical Suites and four capital projects.NMC's Chief Financial Officer Prasanth Manghat said the new loan will provide further headroom for fresh opportunities in its business and is expected to reduce financing costs by $2.0m per year."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," Manghat said. "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."Under the terms of the loan, an accordion arrangement will provide flexibility for a further $75m facility which is available over the next 18 months.The interest rate for the term of the loan was set at 3.0% over one month LIBOR. The Abu Dhabi-based FTSE 250 company operates branch hospitals in Dubai, Sharjah and Al Ain.Shares rose 1.18% to 299.50p at 08:08 Tuesday.RD