Ascendis secures a billion rand funding package

by Trust Matsilele 0

[DATA ASC:Ascendis Health Limited]is health and care company that acquires and develops strong brands in plant, animal and human health.

The funding package includes a Term Facility, Revolving Credit Facility, General Banking Facility and a Trade Finance Facility totalling R660 million (for debt refinance).

(READ MORE: Ascendis Health concludes a R50 mln deal with WDBIH)

According to the company statement, the group has also secured additional growth of 400 million rand under its Domestic Medium Term Note (DMTN) programme bringing the aggregate package negotiated by the company to 1.06 billion rand.

The health company said this funding 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 two billion, of which 400 million rand constitutes the debut issue.

Ascendis’ chief executive Karsten Wellner welcomed the news saying the funding package will contribute to the company’s future prospects.

“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,” said Wellner.

(READ MORE: Ascendis Health to acquire RCA shares)

“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,” added Wellner.

According to the company statement, some of the financial institutions involved in the support for Ascendis include Standard Bank, Nedbank, First Rand, Futuregrowth and Sanlam.