Welltec Secures $325M Senior Note Offering

Welltec announced February 2, 2012 the completion of its US$ 325 million aggregate, 8% Senior Secured Note offering (‘The Notes’). Due in 2019, the 144A/RegS offering drew significant demand from institutional investors in both Europe and the US.

The Notes have been assigned a (P)B1 rating by Moody’s (stable outlook) and a BB- rating by Standard & Poor’s (stable outlook) with equivalent corporate ratings. The Notes have been listed on the Official List and admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange.

The net proceeds of the offering of the Notes will be used to refinance existing credit facilities, pay a special shareholder distribution and for general corporate purposes.
The offering marks Welltec’s successful debut in the international capital markets. The offering strengthens Welltec’s capital base in support of Welltec’s continued high growth. The Notes, which carry interest at a fixed coupon, will mature in 2019 and extends Welltec’s funding significantly compared to previous facilities. The US dollar denomination of the Notes, moreover, creates a natural hedge of Welltec’s predominantly US dollar based revenue.

Jørgen Hallundbæk, the Founder and CEO of Welltec, said: “Our bond issuance will allow us to simplify our capital structure, extend our maturity profile and fix the vast majority of our interest costs. In a larger perspective, we have demonstrated our ability to access the international capital markets and diversify our funding sources. The transaction and the growth it will support will move Welltec to the large cap league. Our profile is now known among some of the largest asset managers in the world. We are grateful for their support and will do our best to deliver a healthy return on their investment. If additional funding will be needed, we would certainly be looking to tap the international capital markets again, and we may consider a listing of our equity in a couple of years.”

The offering was arranged by Goldman Sachs International and Credit Suisse as Joint Book Runners and DNB Markets as Co-Manager. DNB Bank has made available a new multicurrency working capital facility in an amount of US$ 20 million. Bruun & Hjejle acted as capital markets adviser and Danish legal counsel.

For further information, please contact Jesper Helmuth Larsen, CFO.