UPDATE 1: 2:17 p.m. ET 4/1/2021
: HSBC and Standard Chartered cleared about $370 million of their positions in NMC Healthcare’s debt in two separate auctions today, sources close told Reorg. Continue reading for our EMEA Core Credit team's update on NMC Healthcare debt, and request a trial for access to our analysis and reporting on hundreds of other stressed, distressed and performing credits in the region.
HSBC sold about $170 million of debt, which comprised around $20 million of the group’s super senior administrative funding facility, or AFF, $20 million of elevated debt, around $95 million of syndicated debt and around $38 million of bilateral facilities. The AFF sold above par, sources said.
Standard Chartered sold $200 million of debt from two syndicated facilities and one bilateral facility, which traded in the teens to low 20s area, sources said.
-- Bianca Boorer
Original Story 10:58 a.m. UTC on March 31, 2021
Auction for $200M of NMC Claims Expected Tomorrow; Further Supply of Claims Expected as Visibility on Recoveries Improves
An auction for about $200 million of claims relating to the NMC Healthcare insolvency is scheduled to take place tomorrow, sources told Reorg. The auction comprises several tranches of debt of the UAE healthcare group’s larger facilities, sources added. Further pieces of debt are expected to come to market in the coming weeks as more information about likely recoveries becomes available during the administration process.
One of the group’s lenders, Mizuho, sold its share of the group’s $325 million administrative funding facility, or AFF, in February as reported
. The AFF pays 5% cash and 5% PIK while the company negotiates a restructuring with all creditors. The lenders providing the AFF will take a 33% equity stake in the restructured company, according to the group’s Aug. 19, 2020, presentation
At the end of 2020, JPMorgan sold a $60 million piece of NMC’s $2 billion syndicated loan to Bank of America in the low-to-mid teens, as reported
. JPM did not wish to comment. Another bank traded a $40 million piece of the loan around that time at the same levels, one of the sources said.
NMC postponed the presentation of its restructuring plan to mid-April as talks with the creditors’ committee continue, as reported
. The reorganization plan entails creditors owning the equity and nominating board directors to implement a strategy and decide on the timing of an exit.
NMC’s financial advisor Romain Lanier from Perella Weinberg encouraged
lenders to support the plan, which the group’s advisors say will deliver a significant upside as opposed to conducting an immediate core asset sale. He added that the exit instrument will be worth more than the creditors’ claims at present and creditors can go to the secondary market post-reorganization if they wish to monetize.
Richard Fleming and Ben Cairns of Alvarez & Marsal Europe are the joint administrators of NMC Healthcare Ltd. and NMC Health plc. A&M did not wish to comment on the auction tomorrow.
-- Aurelia Seidlhofer, Bianca Boorer