Fullerton Health fully redeems US$175m perps on first call date

INTEGRATED healthcare provider Fullerton Healthcare Corp has redeemed its US$175 million senior, unsecured perpetual capital securities in full.

This underscores the Singapore-based company's "financial resilience and commitment to stakeholders amid economic uncertainty arising from the Covid-19 pandemic", it said in a press statement on Monday.

The 7 per cent perps were redeemed on the first call date of April 6, funded by a combination of internal and external resources.

They were issued in 2017. If unredeemed, the coupon rate for any outstanding principal would have reset every three years after the first call date to the prevailing three-year US Treasury rate plus an initial spread plus 5 per cent.

The company on Monday said the issuance's proceeds had helped it expand geographically, add new capabilities and service offerings, and deepen its presence in core markets.

Group president David Sin thanked the perp investors for their "confidence, trust and strategic input" over the last three years.

Fullerton Health has operations in nine markets across the Asia-Pacific, owns over 500 facilities and employs more than 6,500 staff. It is vertically integrated across a range of services, including managed care and network management, primary care, diagnostics, ancillary and speciality care.

While the novel coronavirus pandemic has affected all healthcare operators, "Fullerton Health has been well prepared with its diversification strategy across markets and its service lines", the company said in its statement.