The package includes a term facility, revolving credit facility, general banking facility and a trade finance facility totalling R660m (for debt refinance). Together with a domestic medium term note programme for additional growth of R400m, the aggregate package negotiated by the company totals R1.06bn and provides Ascendis with a mechanism to grow its funding base in line with its earnings by regularly accessing the primary debt capital market up to a total aggregate value of R2bn, of which R400m constitutes the debut issue.
"We believe the successful implementation of this specific funding package, less than a year after our successful listing on JSE, is further evidence of the market's growing conviction and support for us and our focussed business plans and will contribute significantly towards our growth forecasts," Ascendis CEO, Dr Karsten Wellner, comments.
Furthermore, for Ascendis to successfully execute its vision of becoming a leading international health and care business by acquiring attractive businesses within the health and care industry it is important to establish and maintain a diversified, competitively priced funding base.
The package therefore not only incorporates obligations with varying maturity horizons, but also seeks to appropriately price these various commitments according to Ascendis' corporate risk profile. Specifically, it provides the company with a mechanism to efficiently access the primary debt capital market in line with requirements.
Ascendis management is also intent on rationalising banking facilities in order to streamline group banking and treasury functions. As such, Ascendis has concluded negotiations with various domestic funders to implement the funding package.
"We are extremely pleased to have achieved this significant funding milestone which promises to expedite the organic growth of our market leading brands across all three divisions, as well as facilitate the acquisition of profit enhancing bolt-on brands. The cash flow generated from our acquisitions together with our integration synergies and ongoing organic growth will also ensure that our debt levels remain comfortably within our targeted range allowing us to continue on our successful path and deliver consistent shareholder value," Dr Wellner concludes.
