If there’s one deal we can bank on this year, it’s a restructuring at KKR’s cancer care provider GenesisCare.
GenesisCare is lumped with more than $2 billion in debt and shareholder loans, and earnings that are yet to recover from the COVID-19 pandemic.
With debt to EBITDA hovering in the 18 to 20-times range for most of last year, the company’s under pressure to fix its capital structure. First port of call is to pay down debt.
GenesisCare has pulled a few triggers - selling its cardiology business, for example - but has further to go. The company’s considering funding proposals from a bunch of potential new investors, including distressed debt types.
Street Talk can reveal tonight that Oaktree Capital Management has lobbed a proposal, put together with help from Moelis, and is trying to find a way into the situation. Others are also on the scene, while GenesisCare and its two big shareholders KKR and China Resources have all called in their own bankers to help find a way through.
It’s one to watch in coming months. GenesisCare is a ripping Australian success story, that (in hindsight) went big in the US at the wrong time. It added a stack of debt, which now looks untenable.
There’s a good (and important) business at its heart - and that’s what’s attracting the likes of Oaktree.
As FTI Consulting prepares to front Sun Cable creditors for the first time on Friday, the administrator’s been urgently trying to lock in near-term funding to keep the lights on while an auction plays out.
The drums are beating listed pet services provider Mad Paws Holdings is sitting on a bumper third quarter result, while it puts boutique adviser Hawkesbury Partners to work on scouting M&A options quietly in the background.
Mayfield Childcare’s investor-turned-bidder Genius Education Holdings has done some soul-searching (and due diligence) over the Christmas holidays, and is ready to come back with a higher bid.
Chris Ellison’s Wednesday night declaration that Mineral Resources does not intend to bid for Warrego Energy has left investors with more questions than answers.
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