Emdeon plans $1.33 billion facility, $750 million notes for buyout

By Sara Rosenberg

New York, Aug. 8 - Emdeon Inc. revealed in an 8-K filed with the Securities and Exchange Commission on Monday that its buyout financing will include a $1.325 billion senior secured credit facility and $750 million of senior unsecured notes.

Bank of America Merrill Lynch, Barclays Capital Inc. and Citigroup Global Markets Inc. are the lead banks on the debt.

The credit facility includes a $125 million revolver and a $1.2 billion term loan.

The notes are backed by a commitment for a $750 million senior unsecured bridge loan.

Other funds for the transaction will come from $870 million of equity, along with the roll-over of about $330 million of equity.

As was previously reported, Emdeon is being acquired by Blackstone Capital Partners VI LP for $19 per share in cash. The transaction is valued at about $3 billion.

Following completion of the acquisition, Hellman & Friedman will maintain a significant minority equity interest in the company.

Closing is expected in the second half of this year, subject to customary conditions, including approval by Emdeon's stockholders and clearance under the Hart-Scott-Rodino Act.

Emdeon is a Nashville, Tenn.-based provider of revenue and payment cycle management solutions, 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.