June 15 (Reuters) - Healius Ltd (HLS) : SALE OF MEDICAL CENTRES...

June 15 (Reuters) - Healius Ltd (HLS) :

• SALE OF MEDICAL CENTRES FOR $500 MILLION
• ENTERED BINDING AGREEMENT TO SELL HEALIUS PRIMARY CARE BUSINESS TO FUNDS MANAGED BY BGH CAPITAL
• WILL RETAIN DAY HOSPITALS AND IVF WHICH CURRENTLY SIT WITHIN ITS MEDICAL CENTRES DIVISION.
• UP TO $75 MILLION OF PROCEEDS MAY BE DEFERRED IF EARNINGS OF DENTAL CLINICS HAVE NOT RETURNED TO PRE-COVID-19 LEVELS WHN DEAL CLOSES
• ON COMPLETION OF DEAL, EXPECTS TO RECEIVE CASH PROCEEDS OF ABOUT $470 MILLION
• SUCCESSFULLY SIGNED REFINANCE OF ITS SYNDICATED BANK DEBT FACILITY OF $500 MILLION WHICH WAS DUE TO MATURE IN JANUARY 2021
• COMPLETION OF TRANSACTION EXPECTED BEFORE END OF 2020
• WILL PROVIDE HEALIUS PRIMARY CARE CERTAIN SERVICES ON COMMERCIAL, ARM'S-LENGTH TERMS FOR 12 MONTHS FOLLOWING COMPLETION
• WILL BE LOOKING TO RESET ITS COST BASE BY ENTRENCHING A NUMBER OF SHORT-TERM COST REDUCTIONS
• SYNDICATED BANK DEBT FACILITY INCREASED BY $70 MILLION TO $570 MILLION, MATURITY EXTENDED TO JAN 2024

Source text https://reut.rs/3d1PEt1

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