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Bio City Development Company to build Turkey’s first biomedical sconce park

Bio City Development Company BV (BCDco), a leading emerging markets’ healthcare infrastructure company, and an affiliate of the Turkish housing authority, TOKi, have formed a partnership and successfully attracted foreign investment to build a state of the art tertiary care paediatric hospital with integrated research and development facilities.

BCDco has successfully completed the offering of USD200 million Convertible Bonds due 2018 (the Bonds), which may be increased by up to USD25 million prior to settlement, to finance the development of Bio City Istanbul.  An affiliate of Lyrical Partners, the New York investment firm, provided significant early stage investment in BCDco.
Professor D Raphael Levey, Senior Chairman of BCDco says: "We are very happy that the demand for a convertible bond in BCDco has been so strong. It is gratifying that so many institutional investors have taken part in the offer, demonstrating the growing interest in investing in emerging markets healthcare.  Bio Istanbul is an exceptional project which will transform paediatric healthcare and biomedical R&D in Turkey and the wider region."
The net proceeds of the Offering will be used to allow the Company and its subsidiaries to develop Bio Istanbul, to fund general working capital and to accelerate growth in its operations, including the development of Bio Cities in other locations. The Bonds comprise both a redeemable debt element, with a maturity date of June 2018, and an equity element extending to June 2021.  The Company, with the consent of Bondholders, has the option to place up to US$100 million of additional Bonds for a period of 24 months to finance further developments. The Bonds will be issued at 100 per cent of their principal amount and will bear interest at the rate of 8.0% per annum, payable semi-annually in arrears.
Once the redeemable debt element has been repaid (whether at maturity, upon early redemption or upon a qualifying IPO), the equity rights convert into shares in BCDco (or the relevant issuer in the qualifying IPO, if not the Company) upon a qualifying IPO, with the equity rights initially representing 85% of the ordinary shares of BCDco.
Settlement and delivery of the Bonds is expected to take place no later than 25 June 2011.
Application has been made to list the Bonds on the official list of the Singapore Stock Exchange. The Bonds were placed through an accelerated bookbuild placement with institutional investors (outside the United States) conducted by ISM Capital LLP, acting as sole Bookrunner and Manager in connection with the Offering. Roc Global Securities LLC acted as co-lead Manager (U.S.).
Blackstone Advisory Partners acted as advisor to the Company in connection with the placing.

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