Emdeon to start roadshow Wednesday for $375 million eight-year notes

By Paul A. Harris

Portland, Ore., Oct. 7 - Emdeon Inc. will begin a roadshow on Wednesday in the Mid-Atlantic states and New Jersey for its $375 million offering of eight-year senior notes (expected ratings Caa1/CCC+), according to an informed source.

Subsequent roadshow stops include New York City on Thursday and Boston on Friday.

The show moves to the West Coast of the United States during the early part of the following week, with an Oct. 17 stop in Los Angeles and Oct. 18 presentations in San Francisco.

Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and SunTrust Robinson Humphrey are the joint bookrunners.

The Rule 144A and Regulation S with registration rights notes come with four years of call protection and feature customary high-yield covenants.

The notes, which will be issued via special purpose vehicle Beagle Acquisition Corp., will rank pari passu with the $375 million of the 11¼% senior notes due 2020 that affiliates of Goldman Sachs have agreed to purchase. That agreement was announced in a schedule 14 A document filed on Oct. 6 with the Securities and Exchange Commission.

The placement of the 11¼% notes halved the $750 million amount of the senior unsecured bridge loan, which is part of the financing for the buyout of Emdeon by Blackstone Capital Partners VI LP and Hellman & Friedman LLC for $19.00 per share in cash in a transaction is valued at about $3 billion.

In addition to the $750 million of proceeds from the notes sale, financing for the LBO includes a $1.2 billion term loan, a $125 million revolver, a planned $870 million of equity and the rollover of about $330 million of equity.

Emdeon is a Nashville-based provider of revenue and payment cycle management services, connecting payers, providers and patients in the U.S. health care system.

© 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.