Primary Health Care Said to Cut Loan Interest Costs by a Quarter

Primary Health Care Ltd., an Australian provider of medical services, cut interest costs on loans by more than a quarter in a A$1.25 billion ($1.14 billion) refinancing, according to two people familiar with the matter.

The new loan was split into a A$625 million three-year tranche paying a margin of 155 basis points more than the benchmark rate, and five-year debt paying 180 basis points more, the people said, asking not to be identified because the details are private. The company paid as much as 250 basis points on the previous loan, according to data compiled by Bloomberg.

The refinancing allows the company to repay A$152 million of bonds maturing in September 2015, the company said in a statement today, which didn’t include any pricing details. Primary Health Care’s 2015 floating-rate bonds pay 400 basis points more than the bank bill swap rate, according to Bloomberg-compiled data.

The banks providing the new facility include Commonwealth Bank of Australia, National Australia Bank Ltd., Westpac Banking Corp., Bank of Nova Scotia, Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corp., the people familiar with the transaction said.

Lauren Thompson, a spokeswoman for the Sydney-based company, declined to comment on the loan margins.

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