MedAssets sets $1.13 billion first-lien loan at Libor plus 475 bps

By Sara Rosenberg

New York, Jan. 22 – MedAssets Inc. firmed pricing on its $1.13 billion 6.5-year first-lien covenant-light term loan (B2/B) at Libor plus 475 basis points, the low end of the Libor plus 475 bps to 500 bps talk, according to a market source.

As before, the first-lien term loan has a 1% Libor floor, an original issue discount of 99, with an additional 50 bps fee if the credit facility has not been repaid within six months of closing, and 101 soft call protection for six months.

The company’s $1.73 billion senior secured credit facility also includes a $100 million five-year revolver (B2/B) and a $500 million seven-year second-lien covenant-light term loan (Caa2/CCC+).

Pricing on the second-lien term loan is unchanged at Libor plus 950 bps with a 1% Libor floor and a discount of 97, and the tranche is still non-callable for one year, then at 103 in year two and 101 in year three or par for 12 months for any prepayments with proceeds of the SCM divestiture.

Barclays, Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and Golub Capital Markets LLC are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Pamplona Capital Management for $31.35 per share, which represents a total enterprise value of about $2.7 billion for the acquisition.

Other funds for the transaction will come from about $1,238,000,000 in equity.

Pamplona has entered into a separate agreement with VHA-UHC Alliance NewCo Inc., a member-owned health care company, to divest MedAssets’ Spend and Clinical Resource Management segment to VHA-UHC Alliance following the completion of Pamplona’s acquisition of MedAssets.

Pamplona will combine MedAssets’ Revenue Cycle Management segment with Precyse, a Pamplona-owned company that provides health information management services, technology and education.

Closing is expected this quarter, subject to the receipt of regulatory approvals, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, MedAssets’ stockholder approval and other customary conditions.

First-lien leverage is 4.5 times, and total leverage is 6.5 times.

MedAssets is an Alpharetta, Ga.-based health care performance improvement company.

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