Chi-Med Refinancing of Existing Loan Facility

RNS Number : 4710K

Hutchison China Meditech Limited

25 June 2014

 



Hutchison China MediTech Limited ("Chi-Med")
(AIM: HCM)

Chi-Med Refinancing of Existing Loan Facility

London: Wednesday, 25 June 2014: Chi-Med today announces the refinancingof its existing 3-year term loan facility issued on 9 December 2011 for a principal amount of HK$210 million (approximately US$27.0 million) (the "Existing Facility"), as announced on 12 December 2011, by a new 4-year term loan facility with the same lender as detailed below.

In order to refinance the Existing Facility, Chi-Med's wholly owned subsidiary, Hutchison China MediTech Finance Holdings Limited ("HCMFH"), has been granted a term loan facility of up to a principal amount of HK$210 million (approximately US$27.0 million) for a term of 4 years at a similar cost to the Existing Facility under a term loan facility agreement (the "Loan Agreement") made between HCMFH, Hutchison Whampoa Limited ("HWL"), a substantial shareholder of Chi-Med, and the lender on 24 June 2014.

On 24 June 2014, HCMFH entered into a guarantee fee agreement (the "Guarantee Fee Agreement") with HWL, under which a guarantee fee (the "Guarantee Fee") shall be payable by HCMFH to HWL quarterly in advance in consideration of HWL guaranteeing the entire repayment obligations of HCMFH under the Loan Agreement. The Guarantee Fee is of the same amount and on the same terms as the arrangement relating to the Existing Facility.

In addition to the Guarantee Fee Agreement, as a condition of HWL providing the guarantee under the Loan Agreement, on 24 June 2014 Chi-Med entered into a letter of indemnity (the "Indemnity Letter") with HWL whereby Chi-Med agrees to indemnify HWL against all or any of its damages and losses arising from the provision of the guarantee under the Loan Agreement and any breach of the Guarantee Fee Agreement by HCMFH. This is on the same terms as the arrangement relating to the Existing Facility.  

The directors of Chi-Med consider, having consulted with its nominated adviser Panmure Gordon (UK) Limited, that the terms of the Guarantee Fee Agreement and the Indemnity Letter are fair and reasonable insofar as the shareholders of Chi-Med are concerned.

Christian Hogg, Chi-Med CEO said: "The refinanced loan facility we have arranged represents, in our view, a  practical, cost efficient and non-dilutive financing option for Chi-Med."  

Ends

Enquiries

Chi-Med    Christian Hogg, CEO	Telephone:           [phone]
Panmure Gordon (UK) Limited    Richard Gray    Andrew Potts	Telephone:           [phone]
Citigate Dewe Rogerson    Anthony Carlisle    David Dible	Telephone:           [phone] Mobile:                   [phone] Mobile:                   [phone]

About Chi-Med

Chi-Med is a China-based healthcare group focused on researching, developing, manufacturing and selling pharmaceuticals and health-related consumer products.  Its China Healthcare Division manufactures, markets and distributes prescription and over-the-counter pharmaceuticals in China.  Its Drug R&D Division focuses on discovering and developing innovative therapeutics in oncology and autoimmune diseases.  Its emerging Consumer Products Division focuses on organic and natural consumer products in Asia.

Chi-Med (LSE:HCM) is majority owned by the multinational conglomerate HWL (SEHK:13).  For more information, please visit: www.chi-med.com.

 

END

 

 

MSCEELBLZQFZBBV