Romania’s MedLife to borrow another EUR 40 mln for expansion

MedLife Group (M), the leader of the private medical services market in Romania, announced it plans to borrow another EUR 40 million under a syndicated loan facility to develop its existing regional hospitals, consolidate the infrastructure in the oncology area, and develop post-covid programs.

The group also stressed that the M&A program would remain a priority and that it initiated 3-4 advanced discussions at the national level and 1-2 at the regional level.

The new loans will finance the group's consolidation and expansion at the national level by developing medical units such as MedPark, where the patient would benefit from a full approach both in terms of the medical act's complexity and the quality of related services. Moreover, the company aims to continue the research activities and to extend them through new investments.

MedLife ended the 2020 financial year with consolidated pro-forma sales of EUR 251 mln, becoming one of the largest private healthcare providers in the region. The figures budgeted for 2021 show a 15% increase in the group's consolidated sales and a similar EBITDA margin compared to last year.

The syndicate of banks which would sign the new syndicated loan is comprising the following lenders: Banca Comerciala Romana (CCR), as coordinator, mandated lead arranger, documentation agent, facility & security agent and lender, BRD Groupe Société Générale, Banca Transilvania, and Raiffeisen Bank as lead arrangers and lenders.

MedLife's shares more than doubled their value in the last 12 months, and the company's market capitalization currently stands at EUR 272 mln.

(Photo source: the company)