Emdeon launches $395 million incremental term loan B to investors

By Sara Rosenberg

New York, July 28 – Emdeon Inc. held its lender call on Tuesday, launching a fungible $395 million incremental term loan B due November 2018, according to a market source.

Price talk on the incremental loan is Libor plus 250 basis points with a 1.25% Libor floor, which matches existing term loan B pricing, and an original issue discount of 99.5, the source said.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies Finance LLC, Mizuho and SunTrust Robinson Humphrey Inc. are the arrangers on the deal.

Commitments are due at noon ET on Aug. 4, the source added.

Proceeds will be used to help fund the acquisition of Altegra Health Inc. from Parthenon Capital Partners for about $910 million.

Other funds for the transaction will come from $60 million in revolver borrowings, $250 million in new senior unsecured notes, $65 million of cash on the balance sheet and $160 million in new sponsor equity.

Closing on the acquisition is expected in the third quarter, subject to customary closing conditions, including expiration or early termination of the waiting period under the Hart-Scott-Rodino Act.

Emdeon, a Blackstone and Hellman & Friedman portfolio company, is a Nashville-based provider of health care revenue and payment cycle management and clinical information exchange solutions. Altegra Health is a Miami Lakes, Fla.-based provider of technology-enabled, next generation payment solutions to health care providers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.