Emdeon plans to issue $750 million senior notes via Barclays

By Paul A. Harris and Sara Rosenberg

Portland, Ore., Aug. 22 - Emdeon Inc. plans to sell $750 million of senior notes in a deal to be led by Barclays Capital Inc., according to an SC 13E3 filed with the Securities and Exchange Commission on Monday.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. will also be part of the syndicate.

The notes are backed by a commitment for a $750 million one-year senior unsecured bridge loan priced at Libor plus 850 bps for the first 60 days. Thereafter, interest will be payable at a rate equal to the senior cap. There is a 1.25% Libor floor.

Proceeds will be used to help fund the buyout of the company by Blackstone Capital Partners VI LP for $19 per share in cash. The transaction is valued at about $3 billion.

Other funds for the transaction will come from a $1.325 billion senior secured credit facility.

Also, the company plans on getting $870 million of equity, along with the roll-over of about $330 million of equity.

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-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.