MedLife supplements the syndicated loan with 50 million Euro, reaching a total value of 268.3 million Euro

MedLife, the largest network of private medical services in Romania, announces the signing of the addendum regarding the increase of the credit limit by an additional amount of 50 million Euro, according to the approval received from shareholders, the total value of the borrowed capital thus reaching 268.3 million Euro.

The syndicate of banks that signed the credit limit increase consists of Banca Comercială Română, as coordinator, mandated as main arranger, documentation agent, facility and guarantee agent and financier, Raiffeisen Bank and BRD Groupe Societe Generale as main arrangers trustees and financiers and Banca Transilvania and ING Bank N.V. Amsterdam Bucharest Branch, as main arrangers and financiers.

“For almost 30 years we have been building the largest medical network in Romania, and for more than 10 years we have been a reliable partner for dozens of local entrepreneurs, MedLife proving excellent results both in terms of acquisition of new companies as well as regarding their related integration processes. There are still relevant opportunities in the market that would allow the Group to maintain the current trend of expansion and consolidation of the medical services market, while capturing additional profitability. Keeping a cautious approach, we want to evaluate these opportunities, the additional funds will be used mainly for the development of M&A processes, with a focus on acquisitions of profitable companies that will largely not affect profitability and debt indicators at Group level.

In parallel with the development plans, we maintain our current objective to gradually improve the profitability of the Group, as well as the debt ratio calculated as Net Debt / EBITDA. For this objective, we have the support of the multiple investments carried out in the last two years, which will deliver important results in the next period”, said Mihai Marcu, President and CEO of MedLife Group.

“We are honored to continue the coordination of the syndicated loan extension for MedLife Group. We support MedLife’s commitment to expanding access to quality services, new medical technologies and advanced treatments and believe in the strategic role it plays in strengthening Romania’s healthcare system”, said Raluca Orha, Syndication Coordinator BCR.

“Healthcare sector financing is essential for the medical infrastructure modernization and we are pleased to be a long-term partner for MedLife, one of the most innovative companies in Romania. The additional EUR 50 million syndicated loan will be used to support MedLife’s expansion and acquisition strategy, which further translates into improving access to top-notch medical services and increasing the sector’s ability to meet the population’s healthcare needs”, said Alina Cernat, Head of Consumer and Services Department, BCR.

”Looking carefully to 2024, we continue to focus on consolidating and optimizing the companies within the MedLife Group, given that this strategy proved its effectiveness last year. We are dedicated to continuing this healthy business trend with solid growth, entering a cycle of gradual increase in margins and a slightly lower level of debt in the next 12-18 months”, Mihai Marcu also said.

MedLife ended 2023 with a consolidated pro-forma turnover of EUR 453 million, up 25% compared to the same period of the previous year, registering a double-digit advance for most business segments.