APM Human Services secures financing from Goldman Sachs
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The news: APM Human Services has secured $950 million in financing from Goldman Sachs through 2030 which aims to retire its existing syndicated corporate facility.
The context: APM said the loan would enable the company to extinguish and replace its existing facilities in the event that Madison Dearborn Partners' acquisition of APM does not proceed.
If the scheme does proceed, then the MDP acquisition facility would extinguish the existing facilities.
APM saw a surge in its share price after it rejected a takeover bid valued at $1.60 per share from CVC Asia Pacific that it viewed as undermining its fundamental value earlier this year. APM’s top shareholder, MDP, then lobbed a higher takeover bid that would value APM’s equity at around $1.28 billion, which APM leadership initially described as “disappointing”.
However, in June APM leadership recommended its shareholders vote in favour of an improved offer from MDP. Shareholders would receive $1.45 per share, up from $1.40 in MDP’s April offer for a new total valuation of $1.3 billion. With weak customer flow and poor market outlook for APM’s operations in the human services industry, Bell Potter supported the decision by recommending APM take the deal due to a lack of alternatives.
The source: ASX announcement
