Novotech Completes $255M Private Placement Transaction and $505M Refinancing to Accelerate Implementation of Growth Initiatives

SINGAPORE and SYDNEY, Jan. 19, 2022 /PRNewswire/ -- Novotech Health Holdings Pte. Ltd. ("Novotech Holdings" or the "Company") today announced the completion of a financing round of US$760 million (about 1.06 billion AUD) comprising a US$255 million private placement and a US$505 million refinancing transaction, setting itself as the leading Asia-Pacific biotech specialist Contract Research Organization ("CRO") to pursue further growth opportunities by M&A in geographical expansion as well as data, AI and tech-enabled offerings.

The private placement transaction attracted multiple new investors as part of a strategic expansion of the Company's shareholder base. Several global institutional investors, sovereign wealth funds and healthcare focused investors participated in this private placement transaction, along with all of the existing institutional shareholders of the Company. This transaction values the Company at approximately US$3 billion (about 4.17 billion AUD). Notwithstanding the volatile market environment, particularly across public capital markets in Asia during the fourth quarter of 2021, the Company successfully attained a robust valuation step-up in this transaction as compared to the valuation following the previous private placement transaction that was completed in February 2021. TPG Capital Asia, the Asia-focused private equity platform of global alternative asset firm TPG, will continue to be the controlling shareholder of the Company, and will continue to provide dedicated and long-term support for the Company's future development.

UBS AG acted as the Sole Financial Advisor to the Company and TPG on this private placement transaction.

In addition, on the back of a continued period of strong growth, Novotech Holdings is pleased to announce the completion of a $505 million debt refinancing transaction. This refinancing transaction, which includes a revolver and growth facility, replaces the Company's existing debt facilities which were due to expire in 2023. This refinancing exercise further optimizes Novotech Holdings' balance sheet, establishes a fit-for-purpose capital structure and provides additional support for the execution of the Company's various growth initiatives. Both existing and new lenders participated in this refinancing transaction.

Dr John Moller, CEO of Novotech Holdings, said: "We are grateful for the support and recognition we received from multiple global investors that participated in the private placement transaction. In addition, we are very pleased to receive continued endorsement from our existing investors. We look forward to accelerating our growth by pursuing various strategic M&A and tech enablement initiatives and seek to better serve our biotech and pharmaceutical clients and support the clinical research industry in the development of a wide spectrum of therapeutic areas."

The successful completion of both the private placement and refinancing transactions is a testament to the strength and resilience of Novotech Holdings' unique business model. With a focus on the biotech and small and medium pharmaceutical companies across the Asia-Pacific region, the Company recorded approximately 35% backlog growth and 30% net new business growth in CY21, with China net new business up 60%. With the proceeds from the private placement and refinancing transactions, and existing funds, Novotech Holdings is in an even stronger position to pursue organic and inorganic growth opportunities.

These transactions are also a clear demonstration of Novotech Holdings' broader focus on growth, and methodical pursuit of shareholder value creation, following the completion of recent initiatives including the merger of Novotech and PPC Group in 2020, a private placement transaction in early 2021, and a number of technology enablement investments.

MEDIA ENQUIRIES

Jim Kellyjim@domestiqueconsulting.com.au^[1]

About Novotech Health Holdings

Novotech Health Holdings Pte. Ltd. is a leading Asia-Pacific biotech specialist CRO and consists of two operating brands, Novotech and PPC in mainland China. Novotech Holdings is a CRO with integrated labs and phase I facilities providing drug development consulting and clinical development services. It has been instrumental in the success of approximately 3,700 clinical trials across all trial phases and broad range of therapeutic areas. Novotech Holdings is well positioned to serve biopharmaceutical clients conducting clinical trials in Asia and globally.

About TPG

TPG is a leading global alternative asset management firm founded in San Francisco in 1992 with $109 billion of assets under management and investment and operational teams in 12 offices globally. TPG invests across five multi-product platforms: Capital, Growth, Impact, Real Estate, and Market Solutions and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities.

References

1. ^{^} jim@domestiqueconsulting.com.au (www.prnasia.com)