According to a Hong Kong Stock Exchange filing, H&H has entered into a refinancing agreement (through its indirect subsidiary, Biostime Healthy Australia Investment) with Goldman Sachs and its affiliates for a three-year term loan of up to US$300m and a US$50m revolving credit facility, to be syndicated to other financial institutions.
The amount to be borrowed is meant for the refinancing of an existing three-year term loan of up to US$350m, which comes under an earlier agreement between H&H and Goldman Sachs — dated April 24 2016 — meant to refinance bridge financing related to H&H's acquisition of equity interest in Swisse Wellness.
The new term loan will be available for use within 20 business days after the agreement has been signed, and will also provide for the US$50m revolving credit facility. Any amount borrowed under this facility should be used for general corporate matters and the capital of H&H and its subsidiaries.
H&H has referred to the terms and conditions of the refinancing facility agreement as "customary commercial terms for debt financings of this kind".
In accordance with the agreement, H&H executive director Luo Fei, non-executive director Luo Yun and their respective families will continue to maintain the largest percentage of H&H's issued voting share capital after the loan is completed.
The firm had bought vitamin brand Swisse in 2016, capitalising on growing demand for "clean and green" health supplements from Australia.