Mediclinic International - Case Study

Transaction Overview

 In October 2012, Mediclinic International, South Africa’s second largest provider of private hospital services, announced a c.$4bn refinancing / restructuring of its entire balance sheet covering Europe, Middle East and Africa. The restructuring included Europe’s largest leveraged bank loan of 2012 in relation to Mediclinic’s Hirslanden operations, Switzerland’s largest private hospital group.

 Mediclinic had acquired Hirslanden in 2007 funded by CHF2.5bn (c.$2.1bn) of acquisition debt. In addition, by 2012 the Company had built up a significant mark-to-market liability on its Swiss interest rate swap taken out at the time of acquisition. The c.$4bn refinancing package included a new CHF2.1bn (c.$2.2bn) leveraged loan in Switzerland, as well as ZAR6.2bn (c.$0.8bn) of senior debt facilities and preference shares, and a ZAR5bn (c.$0.6bn) rights issue in South Africa. The proceeds of the refinancing were principally used to refinance the Hirslanden acquisition debt and provide incremental growth capital to the Group.

 Greenhill Role

 Greenhill served as joint financial advisor (with RMB in South Africa) to Mediclinic, advising the Company throughout on its options in relation to the restructuring. Greenhill played a central role in successfully negotiating the fully underwritten Swiss leveraged loan (with a margin of c.225bps), advising on the restructuring Hirslanden’s interest rate swaps and securing binding commitments from the majority shareholder  to underwrite the South African rights issue. 

Note: Conversions to USD based on prevailing rates at relevant time