Pathology and diagnostic imaging service provider Healius has confirmed that it has refinanced its debt.
The move was flagged by DataRoom at the weekend.
Healius told the market on Tuesday that it had successfully refinanced Tranche A of its syndicated debt facility with the support of lenders until March 2027.
As part of the refinancing, Healius has scaled back both demand and the size of the tranche from $250m to $180m, while ensuring sufficient headroom and liquidity for its operations. Gearing covenants for both facilities are 4.5 times earnings for the 12 months to June 30 and December 31 before reverting to 3.5 times for subsequent annual and half year reporting periods.
Financial close is expected on May 16.
At December, Healius had $327m of net debt, which was 3.17 times its earnings, below its covenant of less than 4 times.
But it had reduced the level through a capital raising, after it was $447m in the 2023 financial year.
Its banking facilities had been reduced by $250m to $750m and is reviewing asset sales as part of its Capital Management focus.
Elsewhere, GenesisCare Australia has hired a number of directors for the board of the cancer care provider.
In addition to chairman Robert Cooke, who previously ran Healthscope and Symbion, GenesisCare has hired directors including Telstra Health founder Shane Solomon, for Ten Network director Dean Hawkins, former Goldman Sachs banker Chris Champion, Oaktree Capital Managing Director Jarrad Solomons and Avenue Capital Australia head Paul Nicholls.
Dr Mario Guerrieri and Professor Lizbeth Kenny AO have also been appointed to the board to represent GenesisCare doctors who will become owners of the business, alongside GenesisCare’s new major investors, which include funds managed by Oaktree Capital Management, L.P., Avenue Capital Group, Bain Capital, and Canyon Partners.
The funds gained control of the business after GenesisCare was placed into Chapter 11 Bankruptcy in the United States after amassing too much debt when under the ownership of Kohlberg Kravis Roberts and China Resources.
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