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Emdeon moves timing ahead on $375 million notes and sets price talk
By Paul A. Harris
Portland, Ore., Oct. 13 - Emdeon Inc. cut short its roadshow and set price talk for its $375 million offering of eight-year senior notes (expected ratings Caa1/CCC+) on Thursday, according to an informed source.
Yield talk is 11% to 11¼%.
The order books close at 11 a.m. ET on Friday, except for Boston accounts. The deal is set to price thereafter.
Initial timing for the roadshow specified stops on the West Coast of the United States in the week ahead.
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 will have a long settlement, with the settlement date set for Nov. 2.
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. The wide end of Thursday's 11% to 11¼% price talk is equal to the coupon set on those privately placed notes.
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 proceeds from that $750 million amount of unsecured debt, financing for the LBO includes a $1.224 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.
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