March 11, 2020 / 10:26 AM / 3 months ago

UPDATE 1-NMC Health 5-year dollar sukuk plummet 36.5 cents

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DUBAI, March 11 (Reuters) - United Arab Emirates-based NMC Health’s five-year dollar sukuk due in 2023 plummeted 36.5 cents on the dollar to 24.8 on Wednesday, Refinitiv data showed, after the company said it had identified over $2.7 billion in debt that had not been disclosed to its board.

The yield on the sukuk surged to as high as 59.2% on Wednesday from a close of 24.1% on Tuesday, Refinitiv data showed. Such levels suggest investors do not expect to get most of their money back.

London-listed NMC has been embroiled in a series of setbacks since December when U.S.-based short-seller Muddy Waters questioned its financial statements. Ever since, the company’s shares have dropped dramatically, losing more than half of their value.

“The Board believes that some proceeds may have been utilised for non-group purposes,” the company said in a statement on Tuesday.

The company said it now estimates that it has around $5 billion in debt.

NMC is working with advisers it hired to assist in talks with lenders, Moelis and PriceWaterCoopers, to understand the exact nature and quantum of the undisclosed debt, the company said.

On Monday, GKSD Investment Holding pulled out of a bid for NMC, in the latest sign of potential buyers walking away from the deal.

Earlier this month, NMC said it would ask for an informal standstill on debt to stabilise its finances. It had reported $2.1 billion debt in June.

Reporting by Yousef Saba in Dubai and Tom Arnold and Abhinav Ramnarayan in London; Editing by Louise Heavens and Louise Heavens

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