Intermedica

pending

The proposed project includes a 7-year US$150 million A/B Loan facility (US$75 million from the IFC’s own account) to Grupo Notre Dame Intermedica (“GNDI”, ''''Intermedica'''' or the ''''company'''') to finance the company’s expansion plan and refinance part of its existing debt. Established in 1968, Intermedica is Brazil’s #4 largest health maintenance organization (''''HMO'''') with 1.9 million lives and with a network of 11 hospitals (almost 1,110 beds), 63 medical centers (clinics), 36 in company ambulatories (emergency services, with almost 120ambulances) and 117in-company units for occupational health services, where almost all assets are within 100 km around Rio de Janeiro and Sao Paulo. Over 93% of Intermedica’s lives are low and middle income employer-provided from the states of São Paulo and Rio de Janeiro. The company offers a wide range of treatment services including but not limited to orthopedics and traumatology surgery, plastic and reconstructive surgery, specialized and general clinic services such as oncology, chemotherapy, infectology, intensive medicine, pediatrics and diagnosis covering radiodiagnosis, endoscopy, ultrasonography, and computerized tomography. Intermedica also owns the #4 dental care operator in the country, Interodonto, with over 1.1million beneficiaries. Company does not have retail pharmacies, other than the pharmacies within the hospitals and leases a warehouse of almost 3.200 m2 in Sao Paulo for medical supplies. Intermedica also works with several other suppliers to provide medicines. The company does not have and operate any incinerator in its facilities.The Company is fully owned, since 2014, by Bain Capital (''''Bain'''' or the ''''Sponsor''''), a US-based PE fund. Bain Capital has important knowledge of the healthcare industry globally. Its existing global healthcare portfolio is comprised of 10 companies including hospitals, labs, med tech and pharmaceutical companies in the US, Europe and emerging markets such as India and China. IFC has recently committed a loan with Lionbridge (project number 37919) a financial leasing company controlled by Bain Capital in China. The proposed investment plan would include (i) refinancing of the acquisition of Grupo Santamalia (acquired in July 2015), an HMO with 250.000 lives, 2 hospitals (220 beds) and 17 medical centers; (ii) a capex for refurbishment and brownfield investment in hospitals and medical centers including receiving international accreditation for the hospitals; (iii) companies management, admin and working capital needs. With implementation of the investment plan, the company aim to reach some 2.9 million health patients and have over 1.650 beds.At the time of the appraisal, capex plan included two main projects, in addition to several small scale renovation/rehabilitation projects;Hospital Guarulhos construction: The hospital was acquired as an empty building. The renovation is ongoing and it is expected to be operational in March 2017, with 120 beds capacity. LZA, a local engineering company, is acting as designer and controller and Brandao &Marmo Engineering and Construction Company is working as the main engineering procurement construction contractor.Acquisition of Unimed ABC Chain, which was acquired in September 2016 and expected to be transferred to GNDI in December 2017, included one hospital with 110 beds, 5 clinics and 2 emergency services.