Goldman Sachs joins bookrunners for Emdeon's proposed $750 million bond offering

By Paul A. Harris

Portland, Ore., Sept. 15 - Emdeon Inc. added Goldman Sachs & Co. as a bookrunner on its proposed $750 million offering of senior notes, according to an informed source.

The deal could come before the end of September but is more likely to launch during October, the source added.

Barclay's Capital will lead the deal. In addition to Goldman Sachs, the joint bookrunners include Bank of America Merrill Lynch and Citigroup Global Markets Inc.

Goldman Sachs was also added as a bookrunner for Emdeon's $1.325 billion senior secured credit facility.

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

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.

Also, the company plans on getting $870 million of equity, along with the rollover 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 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.

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