Healius Declares $300M Fully Franked Special Dividend, Secures New $300M Debt Facility
Healius Limited has announced a fully franked special dividend of 41.3 cents per share totaling approximately $300 million, alongside a new $300 million three-year syndicated bank facility replacing its previous $680 million arrangement.
- Special dividend of 41.3 cents per share fully franked, totaling ~$300 million
- Franking credits amount to approximately $128 million
- New $300 million syndicated bank facility with a three-year term replacing $680 million facility
- Facility covenant limits gearing to 3.5x and interest cover to 3.0x
- Company expects to be in a net cash position by end of FY25
Healius Rewards Shareholders with Significant Special Dividend
Healius Limited (ASX: HLS), a leading Australian healthcare services provider, has announced a fully franked special dividend of 41.3 cents per share, equating to approximately $300 million in total shareholder returns. This dividend is notable not only for its size but also for its full franking status, which includes franking credits valued at around $128 million, enhancing the after-tax benefit for shareholders.
The dividend timetable is set with an ex-dividend date of 9 May 2025, a record date on 12 May, and payment scheduled for 23 May 2025. This move underscores Healius’ strong cash flow generation and commitment to returning value to investors amid a competitive healthcare landscape.
Refinancing with a Streamlined $300 Million Debt Facility
Concurrently, Healius has secured a new $300 million syndicated bank facility with a three-year maturity, expiring in May 2028. This facility replaces the company’s previous $680 million credit line, representing a significant reduction in debt capacity and syndicate size, now limited to four banks. The refinancing reflects a strategic shift towards a leaner capital structure and tighter financial discipline.
Key financial covenants attached to the new facility include a gearing ratio capped at 3.5 times and an interest cover ratio floor of 3.0 times. These covenants indicate the lenders’ confidence in Healius’ ability to manage leverage prudently while maintaining sufficient earnings to cover interest obligations.
Outlook: Net Cash Position and Financial Health
Healius has reiterated its expectation to be in a net cash position by the end of the 2025 financial year, a milestone that would further strengthen its balance sheet and financial flexibility. Achieving net cash status would be a positive signal to investors, suggesting robust operational cash flows and effective capital management.
While the announcement does not provide detailed operational guidance or earnings forecasts, the combination of a substantial special dividend and a streamlined debt facility suggests management’s confidence in the company’s underlying financial strength and future prospects.
Investors will be watching closely for the FY25 results to confirm these expectations and to assess how Healius balances shareholder returns with ongoing investment in its healthcare services network.
Bottom Line?
Healius’ bold dividend payout and streamlined refinancing set the stage for a leaner, more financially disciplined future.
Questions in the middle?
- Will Healius meet its target of a net cash position by FY25 year-end?
- How will the reduced debt facility size impact the company’s growth or capital expenditure plans?
- What operational factors underpin management’s confidence to declare such a large special dividend now?
