NMC Convertible Bondholders Tap PJT Ahead of Debt Restructuring

(Bloomberg) -- NMC Health Plc convertible bondholders are working with PJT Partners Inc. as the troubled Middle Eastern hospital operator prepares for a restructuring, people with knowledge of the matter said.

PJT is advising a group of investors in NMC Health’s $360 million of convertible bonds due 2025, the people said, asking not to be identified because the information is private.

NMC Health’s known debt pile has more than tripled in recent weeks to $6.6 billion, up from the $2.1 billion reported at the end of June, after it uncovered borrowings that hadn’t been disclosed to the board. The company said March 24 it hired Matthew Wilde, the former head of PwC’s Middle East corporate finance and restructuring practice, as its chief restructuring officer to draw up a plan to address its indebtedness.

The hospital operator sold $450 million of convertible bonds in 2018 with an annual coupon of 1.875% in a deal led by JPMorgan Chase & Co. It bought back $90 million of the notes last year, paying investors 92.5% of their value. In addition to bank loans, it also has $400 million of Islamic bonds.

A spokesperson for PJT in New York declined to comment. Representatives for NMC Health in London weren’t immediately available for comment.

NMC Health announced last month it found evidence of suspected fraud and debt that had been used for unknown purposes. It has sought an informal standstill on existing loan facilities and hired Moelis & Co. as an independent financial adviser.

NMC Health’s shares were suspended from trading in February and the U.K.’s Financial Conduct Authority has started a formal investigation.

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