Emdeon plans $250 million notes to help fund Altegra acquisition

By Paul A. Harris

Portland, Ore., July 28 – Emdeon Inc. plans to use the proceeds from $250 million of new senior notes to help fund its acquisition of Altegra Health, Inc., the company said in an EX-99.1 document filed Tuesday with the Securities and Exchange Commission.

The financing also includes $455 million of bank debt, including a $395 million incremental term loan, which launched on Tuesday. The loan is being arranged by Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies Finance LLC, Mizuho and SunTrust Robinson Humphrey Inc.

Proceeds will be used to help fund the acquisition of Altegra from Parthenon Capital Partners for about $910 million.

Other funds for the transaction will come from $65 million of cash on the balance sheet and $160 million in new sponsor equity.

Closing on the acquisition is expected in the third quarter.

Emdeon, a Blackstone and Hellman & Friedman portfolio company, is a Nashville-based provider of health care revenue and payment cycle management and clinical information exchange solutions. Altegra Health is a Miami Lakes, Fla.-based provider of technology-enabled, next generation payment solutions to health care providers.

© 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.