Medical diagnostic services provider Sonic Healthcare Ltd
(ASX:SHL) is to raise US$250 million of long term debt funding.
The company says it has priced US$250 million of notes in the United States private placement market.
Sonic says proceeds from the offer will be used to repay existing bank debt, saying that the notes will significantly lengthen Sonic’s debt maturity profile.
Chief Financial Officer Chris Wilks says the support from investors in this market, who are blue chip insurance companies, has been over whelming with the transaction well oversubscribed.
Mr Wilks says Sonic sees this market as an attractive source of additional funding in the future, as the company continues its growth strategies.
Closing of the transaction is expected by mid January 2010, after final investor due diligence and documentation is complete.
Looking back at the past five years Sonic Healthcare’s 2008 net profit was a highlight for the company.
