(Alliance News) - NMC Health PLC on Monday said a subsidiary has settled in full USD90 million of convertible bonds, using internal cash resources.
NMC subsidiary NMC Health Jersey Ltd on Monday last week invited holders of its senior unsecured guaranteed 1.875% convertible bonds due 2025 to tender up to USD90 million of the USD450 million outstanding principal amount. All USD90 million worth of the bonds were tendered.
The stock was 32% higher in London in morning trade at 1,711.10 pence a share.
The FTSE 100-listed healthcare company intends to cancel the bonds bought back "as soon as possible".
Barclays and JP Morgan Cazenove acted as dealer managers in respect of the transaction, NMC said.
Earlier Monday, Muddy Waters Capital LLC called NMC's response to claims made about the company by the shortseller as "misleading".
Last week, Muddy Waters said it had "serious" doubts over NMC's financial statements, including cash reserves, profitability, and debt levels.
NMC responded on Monday, saying it was disappointed with a share price reaction. Despite being sharply higher Monday, it is significantly lower than where it was trading prior to Muddy Waters's attack. An independent review has been set up to look into the claims.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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