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Misys to replace revolver with $325 million of financing from two sources
By Lisa Kerner
Charlotte, N.C., Sept. 29 - Misys plc said it has signed definitive agreements for $325 million of financing to fund a portion of the proposed merger of Misys Healthcare Systems, LLC and a subsidiary of Allscripts Healthcare Solutions, Inc.
The financing will also be used to replace Misys' existing revolving credit facility, a company news release said.
Misys said the new financing will be provided by two sources.
A $150 million revolving credit facility will be provided for a term of 18 months by a group comprising HSBC Bank plc, the Governor and Company of the Bank of Ireland and Royal Bank of Scotland plc.
According to Misys, the second source, ValueAct Capital, will provide the remaining $175 million financing under a subordinated credit facility for a term of 20 months.
Both financing facilities will remain committed for at least 18 months.
Misys may prepay the loans at any time without penalty, the release said.
The $150 million in proceeds from the equity offering in March, underwritten by shareholder ValueAct Capital, was unaffected by the Lehman Brothers bankruptcy, it was noted in the release.
It was previously reported that Misys was looking for funding alternatives for the merger because the original $305 million credit facility came from Lehman Brothers, according to a news release.
According to Misys, it was unable to get certainty as to whether Lehman Brothers will be able to fulfill its role under the credit facility, which included a term loan and a revolver.
Misys is a London-based applications software and services company. Allscripts is a Chicago-based clinical software company.
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