Linklaters advises on Biostime’s concurrent US$400m High Yield Notes, US$450m Syndicated Facility and Convertible Bond Tender Offer

Linklaters was pleased to recently advise the lead manager on Biostime International Holding Limited’s combined capital markets and bank fundraising exercise, raising a total of US$850m of new financing for Biostime. 

The transaction involved the combination of new US$400m 7.25% high yield notes due 2021, and a US$450m term loan facility and a tender offer for Biostime’s existing HK$3,100,000,000 Convertible Bonds due 2019.

The loan facility was made available in a single instalment, the proceeds of which were used to refinance a US$450m acquisition bridge loan that was incurred for the acquisition of its 83% shareholding in Swisse, the Australian-based vitamin and supplements provider.

The proceeds of the High Yield Notes were placed in a secured escrow account to solely fund the redemption of the Convertible Bonds. The Tender Offer was structured as a modified Dutch auction and was conditional on the successful completion of the High Yield Notes. Approximately US$230 million of Convertible Bonds were successfully re-purchased through the Tender Offer.

The combined transactions were part of a wider exercise relating to balance sheet management of Biostime, following its acquisition of Swisse in 2015. Biostime were looking to proactively deal with their upcoming Convertible Bond redemption and have now provided certainty of funding through the High Yield issue,” said Jon Horan, Capital Markets partner, Hong Kong.

David Mencacci, Linklaters banking partner based in Hong Kong, commented: “The transaction is testament to the strength of our team across practice groups and jurisdictions. A substantial cross-practice team across capital markets and banking was required to complete the transaction with over 30 lawyers across five offices involved in the deal.”

Linklaters acknowledges partner Mark Hageman in London and partners Davide Mencacci and Jon Horan in Hong Kong along with the large team involved in facilitating the transaction.

For further information please contact Nicholas Davy on +852 9700 2617.