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12 Dec 2011 07:00
Hutchison China MediTech Limited ("Chi-Med")
(AIM: HCM)
Chi-Med Loan Facility
London: Monday, 12 December 2011: Chi-Med today announces the raising of a new three-year term loan facility as detailed below:
·; Chi-Med's wholly owned subsidiary, Hutchison China MediTech Finance Holdings Limited ("HCMFH") has been granted a term loan facility of up to a principal amount of HK$210 million (approximately US$27.0 million) by an independent financial institution (the "Lender") for a term of 3 years under a term loan facility agreement (the "Loan Agreement") made between HCMFH, Hutchison Whampoa Limited ("HWL"), a substantial shareholder of Chi-Med, and the Lender on 9 December 2011.
·; On 9 December 2011, HCMFH entered into a guarantee fee agreement (the "Guarantee Fee Agreement") with HWL, under which a guarantee fee (the "Guarantee Fee") shall be payable by HCMFH to HWL quarterly in advance in consideration of HWL guaranteeing the entire repayment obligations of HCMFH under the Loan Agreement. The Guarantee Fee is of an amount equivalent to 1.75% per annum of the amount of the facility under the Loan Agreement.
·; In addition to the Guarantee Fee Agreement, as a condition of HWL providing the guarantee under the Loan Agreement, Chi-Med has on 9 December 2011 issued a letter of indemnity (the "Indemnity Letter") to HWL whereby Chi-Med agrees to indemnify HWL against all or any of its damages and losses arising from the provision of the guarantee under the Loan Agreement and any breach of the Guarantee Fee Agreement by HCMFH.
·; The terms of the Guarantee Fee Agreement and the Indemnity Letter are considered by the directors of Chi-Med, having consulted with its nominated adviser Lazard & Co., Limited to be fair and reasonable insofar as the shareholders of Chi-Med are concerned.
Christian Hogg, Chi-Med CEO said: "The loan facility we have arranged represents, in our view, the most practical, cost efficient and non-dilutive financing option for Chi-Med."
Ends
Enquiries
Chi-Med Christian Hogg, CEO | Telephone: +852 2121 8200
|
Citigate Dewe Rogerson Anthony Carlisle David Dible | Telephone: +44 (0) 20 7638 9571 Mobile: +44 (0) 7973 611 888 Mobile: +44 (0) 7967 566 919 |
Lazard & Co., Limited Paul Gismondi Nick Fowler | Telephone: +44 (0) 20 7187 2000 |
About Chi-Med
Chi-Med is the holding company of a healthcare group based primarily in China and was listed on the Alternative Investment Market of the London Stock Exchange in May 2006. It is focused on researching, developing, manufacturing and selling pharmaceuticals and health oriented consumer products.
Chi-Med is majority owned by Hutchison Whampoa Limited, an international company listed on the Main Board of The Stock Exchange of Hong Kong Limited.
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