MedAvant raises another $3 million from loan agreement

By Sheri Kasprzak

New York, June 22 - MedAvant Healthcare Solutions entered into an agreement for another $3 million as part of a loan from Laurus Master Fund, Ltd.

The agreement also allows for another $1.2 million in additional principal on the loan under certain conditions.

The offering is an extension of the company's $20 million private placement of a term loan and a secured revolving credit facility closed last December.

For the extra principal, Laurus received 572,727 shares of MedAvant.

It could not be determined Friday if the extra principal was in the form of the secured term loan or as part of a secured revolving credit facility.

The term loan issued in December has a five-year term and bears interest at Prime rate plus 200 basis points with an 8% floor. The loan is payable in equal monthly installments with the final payment due Dec. 6, 2010.

The revolver matures on Dec. 6, 2008 and bears interest at Libor plus 500 bps with a 7% floor.

Proceeds from the extra principal will be used for working capital.

Atlanta-based MedAvant is a health care technology services company focused on health care transaction processing, medical cost-containment services, business-process outsourcing and other services to physicians and pharmacists.

© 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.