Emdeon plans $250 million six-year senior notes for Altegra buy

By Toni Weeks

San Luis Obispo, Calif., Aug. 3 – Emdeon Inc. said it will offer six-year senior notes in a Rule 144A and Regulation S deal.

The company announced on July 28 its plans to sell $250 million principal amount of new senior notes to help fund its acquisition of Altegra Health, Inc. from Parthenon Capital Partners for about $910 million.

Other funds for the transaction will come from $65 million of cash on the balance sheet, $160 million in new sponsor equity and $455 million of bank debt, which includes a fungible $395 million incremental term loan B due November 2018.

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.

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