Carlyle’s Turkey Unit Medical Plans Eurobonds in 4th-Quarter
Medical Park Saglik Hizmetleri AS, the Turkish hospital chain partly owned by Carlyle Group LP (CG) (CG), plans to sell Eurobonds in the fourth quarter after issuing lira debt last month, its chief financial officer said.
“The planned cross-border bonds may have five years of maturity for international portion and three years for local,” Levent Ozdemir said in a phone interview yesterday. “If there is demand uncertainty in international markets, we will have the flexibility to sell in the domestic market.”
Medical Park, which owns 16 hospitals and employs 10,000 people in Turkey, said in August it plans to invest $300 million for setting up the Liv Hospital Group at four locations over three years. Carlyle, the world’s second-largest private equity firm, holds 40 percent of Medical Park, while Sancak family of Turkey owns 30 percent. Medical Park’s Chairman Muharrem Usta holds the remainder.
The Istanbul-based company raised 150 million liras ($83 million) from two-year floating rate notes last month and the proceeds will be used in investments in Ankara, Istanbul and Izmir, Ozdemir said. The offer, which was managed by Ak Yatirim Menkul Degerler AS (0323668D), was almost four times oversubscribed.
Carlyle, which bought its Medical Park stake in 2009 for $150 million, and its partners have hired Credit Suisse Group AG (CSGN) (CSGN) and Goldman Sachs Group Inc. (GS) to advise on selling its stake, the Turkish company said in September. TPG Capital and CVC Capital Partners Ltd. are competing to acquire the stakes held by Carlyle and Sancak, people with knowledge of the matter said in November.
“If Carlyle and Sancak family find the right price, they may sell,” Ozdemir said. Medical Park’s sales, which grew 27 percent in the past three years through 2012, will probably expand 52 percent this year, he said, declining to provide further financial details.
Medical Park opened the first Liv Hospital in Istanbul last year and will open another in Ankara in September, Ozdemir said. Two others are planned for Izmir and Istanbul, while another, under the Medical Park brand, will be opened in Ankara this year, he said.
“The value of Medical Park has increased after Liv brand was introduced,” Ozdemir said.
Carlyle bought a 30 percent stake in Penti Corap Sanayi & Ticaret AS, a Turkish hosiery maker, the companies said Sept. 19. Carlyle also bought 48 percent of the Istanbul-based education group Bahcesehir Kolejleri for an undisclosed price, it said last year. It also acquired 50 percent of TVK Gemi Yapim Sanayii AS, a Turkish shipbuilder, in 2008.
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