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HMS Holdings readies $450 million credit facility for acquisition
By Sara Rosenberg
New York, Nov. 7 - HMS Holdings Corp. plans on getting a new $450 million credit facility to help fund its purchase of HealthDataInsights Inc., according to a news release.
Citigroup Global Markets Inc. is the lead bank on the deal.
The facility consists of a $350 million term loan, which will be used to help fund the cash portion of the acquisition, and a $100 million revolver.
The remaining funds for the roughly $400 million purchase price will come from cash on hand and about $16 million will come in the form of assumption of unvested options.
Total debt to adjusted EBITDA will be 2.5 times, and net debt to adjusted EBITDA will be 1.7 times, company officials said in a conference call on Monday.
Closing is expected by Dec. 31, subject to regulatory approvals. It is not contingent on financing.
HMS is a New York-based coordinator of benefits and program integrity services for health care payers. HealthDataInsights is a Las Vegas-based technology-enabled health care services company focused on ensuring claims integrity.
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