HMS launches $450 million credit facility at Libor plus 300 bps

By Sara Rosenberg

New York, Nov. 14 - HMS Holdings Corp. launched its $450 million credit facility with a bank meeting on Monday at talk of Libor plus 300 basis points, according to a market source.

The facility consists of a $350 million term loan and a $100 million revolver.

Commitments are due during the week of Nov. 28.

Citigroup Global Markets Inc. is the lead bank on the deal.

Proceeds will be used to help fund the roughly $400 million purchase of HealthDataInsights Inc.

Other funds for the transaction 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.

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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