Completion of Aldwins House Debt Refinancing

MKTUPDTE

Fri, Jan 24 2025 08:33 am

COMPLETION OF ALDWINS HOUSE DEBT REFINANCING

Promisia Healthcare Limited (Promisia) (NZX: PHL) is pleased to announce the early repayment of the $3.82m vendor loan secured against Aldwins House care facility at a 21.5% discount.

The vendor loan was initially due to mature on 31 March 2027, but with the early repayment, a reduced sum of $3m has been paid by Promisia to settle the vendor loan in full.

The repayment was financed through a new $3m loan facility from Bank of New Zealand (BNZ) with a three-year term and at a fixed rate of 6.8% for two years. The impact of this transaction reflects an $820k reduction in the Group’s borrowings, a 1.6 cent (2.2%) increase to net tangible asset per share and an annualised interest cost saving.

A priority for Promisia has been strengthening and streamlining our debt profile and we have undertaken a number of strategic transactions over the past 12 months in order to achieve this. The most recent transaction results in all interest-bearing debt now:
- Consolidating under one primary lender (BNZ)
- Reducing the Group’s weighted average interest rate to 7.5% – a 150 bp reduction since 31 March 2024
- Extending the Group’s weighted average debt maturity to 2.1 years, compared to 1.1 years as of 31 March 2024

This transaction, alongside the various other refinancing with BNZ over the last 12 month, is a testament of the strong relationship Promisia has built with BNZ, as well as the Group’s ability to create a platform to deliver on our strategic growth ambitions.

ENDS

Authority for this announcement:
Francisco Rodriguez Ferrere, General Manager – Finance, Promisia Healthcare Limited

For more information, please contact:
Francisco Rodriguez Ferrere
Phone: +64 21 245 1801 or email: [email protected]

About Promisia Healthcare
Promisia is a New Zealand based aged care and retirement living provider, with a focus on delivering quality personalised care. Our aim is to be the aged care provider of choice in our communities. Our facilities are located in well-established and well serviced towns and metropolitan areas. Our goal is to profitably grow our business in a sustainable manner, delivering quality care to our residents, peace of mind to their families and whanau, and excellent value to our villages, community and shareholders. Promisia is listed on the NZX (NZX: PHL). http://www.promisia.co.nz.