Ramsay SANTE: Optimizing Debt Costs and Extending Maturity with TLB4 Repricing and TLB3 Extension

Ramsay SANTE, the leading European healthcare and primary care provider, recently announced a significant transaction to optimize its cost of debt and extend debt maturities. The company repriced its €1,025m TLB4 from E+4.00% to E+3.25% / 100 OID, maintaining the same maturity of August 2031. Simultaneously, Ramsay SANTE extended the maturity of its former €425m TLB3 from August 2029 to August 2031, keeping the same margin of E+3.25%. As a result of this transaction, TLB3 and TLB4 have been merged into a new single Term Loan B5 of €1,450m maturing August 2031, priced at E+3.25%. This transaction was arranged by BNP Paribas and Crédit Agricole CIB as Physical Bookrunners.

Through this transaction, Ramsay SANTE has managed to optimize its cost of debt and further extend its debt maturities. The reduction in the interest rate for TLB4 and the longer repayment period for TLB3 result in lower annual interest expenses, thereby reducing the overall cost of debt for the company. Additionally, the extension of TLB3's maturity provides Ramsay SANTE with more time to generate cash flows to repay the debt, further reducing the risk associated with short-term debt obligations.

Ramsay SANTE's strategic objectives and mission-driven approach to healthcare align with this transaction in several ways. By optimizing its cost of debt and extending debt maturities, the company can maintain its financial stability, which is crucial for investing in innovation and improving healthcare services. The company's mission statement emphasizes its commitment to "constantly improving the health of all patients through innovation," and this transaction supports that objective. Furthermore, the transaction was arranged by BNP Paribas and Crédit Agricole CIB, which are known for their commitment to sustainable finance, aligning with Ramsay SANTE's broader objective to contribute to public health service missions and the healthcare network in a sustainable manner.

In conclusion, Ramsay SANTE's recent transaction to reprice its TLB4 and extend the maturity of TLB3 demonstrates the company's commitment to optimizing its cost of debt and extending debt maturities. This transaction aligns with the company's broader strategic objectives and mission-driven approach to healthcare, supporting its commitment to innovation and sustainable finance.