Clifford Chance

Clifford Chance advises Otsuka on US$200 million loan financing to MicroPort Scientific

Leading international law firm Clifford Chance has advised Otsuka Medical Devices Co., Ltd ("Otsuka" or "the Company") in relation to the US$200 million (approximately HKD1.56 billion) loan financing to MicroPort Scientific Corporation ("MicroPort Scientific") as well as the related purchase option and other commercial arrangements between Otsuka and MicroPort Scientific.

Otsuka engages in the research, development and commercialisation of medical devices. The Company is a wholly-owned subsidiary of Otsuka Holdings Co., Ltd, which is listed on the Tokyo Stock Exchange.

MicroPort Scientific, listed on the Stock Exchange of Hong Kong, is principally engaged in the development, manufacturing and sale of high-end interventional medical devices internationally.

The purpose of the US$200 million loan financing is to partially fund MicroPort Scientific's acquisition from Wright Medical Group Inc. of its OrthoRecon business. The OrthoRecon business consists of hip and knee implant products with global revenue of approximately US$269 million in 2012. The acquisition is subject to customary closing conditions, including MicroPort Scientific's shareholder approval and receipt of regulatory clearances.

Corporate partner Cherry Chan led the transaction and was assisted by senior associate Christina Hui and associate Maureen Ho, and supported by the IP team led by partner Ling Ho and senior associate Alice Tang, all based in Hong Kong. Banking and Finance partner Peter Kilner in Hong Kong led a separate team advising on the finance aspects of the transaction and was assisted by associates Daniel Winick in New York and Elizabeth Schultz in Hong Kong.