June 14, 2020 / 11:10 PM / 2 months ago

BRIEF-Healius Announces Sale Of Medical Centres For $500 Mln

June 15 (Reuters) - Healius Ltd:

* 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 reut.rs/3d1PEt1 Further company coverage:

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