MedAssets to launch $1.73 billion credit facility on Wednesday

By Sara Rosenberg

New York, Jan. 5 – MedAssets Inc. scheduled a bank meeting for noon ET on Wednesday to launch its proposed $1.73 billion senior secured credit facility, according to a market source.

Barclays, Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and Golub Capital Markets LLC are the bookrunners on the deal.

As previously reported, the facility consists of a $100 million revolver, a $1.13 billion first-lien term loan and a $500 million second-lien term loan.

Proceeds will be used to help fund the buyout of the company by Pamplona Capital Management for $31.35 per share, which represents a total enterprise value of about $2.7 billion for the acquisition.

Other funds for the transaction will come from about $1,238,000,000 in equity.

Additionally, Pamplona has entered into a separate agreement with VHA-UHC Alliance NewCo Inc., a member-owned health care company, to divest MedAssets’ Spend and Clinical Resource Management segment to VHA-UHC Alliance following the completion of Pamplona’s acquisition of MedAssets.

Pamplona will combine MedAssets’ Revenue Cycle Management segment with Precyse, a Pamplona-owned company that provides health information management services, technology and education.

Closing is expected this quarter, subject to the receipt of regulatory approvals, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, MedAssets’ stockholder approval and other customary conditions.

MedAssets is an Alpharetta, Ga.-based health care performance improvement company.

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