GC Aesthetics has €53m 'poison pill' for potential investors
GC Aesthetics' plan to float in the US contains a poison pill for potential investors - in the form of a potential "accelerated paydown" of a €53m debt package owed to healthcare fund manager Orbimed.
The acceleration will be triggered if an entity not affiliated to private equity firm Montreux or Bill McCabe's Oyster Capital acquires 35pc or more of the company's share capital.
"If we decide or are required to repay the loans under the credit facility before their maturity dates, we are obligated to pay a prepayment penalty equal to 10pc of the principal amount prepaid plus an additional fee based on the date of prepayment. We also would be required to make cash-interest payments on any portion of such an accelerated repayment," the prospectus lodged by the company with the SEC reads.
"The credit facility is subject to acceleration upon certain defaults and in the event any person or group, excluding Montreux, Oyster and their respective affiliates, acquires 35pc or more of our share capital."
The company, which manufactures breast implants, lodged documents for a proposed Nasdaq float with the SEC at the end of last month, saying it wants to become the trusted brand and partner for women seeking "to look healthy, youthful, vibrant and beautiful, and to feel confident about themselves throughout their lifetime".
CEO Ayse Kocak, told the Sunday Independent that floating would help it achieve its vision more quickly. She said the company plans to add more products to its portfolio.
"Certainly we're seeing growth in the breast implant field. This growth is different from region to region, we tend to see higher growth in Latin America and Asia-Pacific markets than in Europe.
"In the overall aesthetics market there is meaningful growth, and I think this is driven by a couple of things. One is that female disposable income is increasing and I think they have more money for these procedures or these products. I think secondly, the perception of aesthetics is also changing," Ms Kocak added.
The company had net losses of $89.4m last year.
Sunday Indo Business