By Sheri Kasprzak
New York, Dec. 9 - MedAvant Inc. released details of its $20 million private placement with Laurus Master Fund, Ltd.
MedAvant received a $5 million secured term loan and a $15 million secured revolving credit facility.
The term loan matures in five years and bears interest at Prime rate plus 200 basis points with an 8% floor. The loan is payable in equal monthly installments with the last payment due on Dec. 6, 2010.
The revolver matures on Dec. 6, 2008 and bears interest at Libor plus 500 basis points with a 7% floor.
Laurus received 500,000 shares as part of the loan agreement.
Proceeds will be used to repay senior debt to Wachovia Bank, National Corp. The rest 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.
Term loan
| Issuer: | MedAvant Inc.
|
| Issue: | Secured term loan
|
| Amount: | $5 million
|
| Maturity: | Dec. 6, 2010
|
| Coupon: | Prime rate plus 200 basis points, 8% floor
|
| Shares: | 500,000
|
| Warrants: | No
|
| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date: | Dec. 7
|
| Stock price: | $4.74 at close Dec. 7
|
|
|
| Revolver
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| Issuer: | MedAvant Inc.
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| Issue: | Secured revolving credit facility
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| Amount: | $15 million
|
| Maturity: | Dec. 6, 2008
|
| Coupon: | Libor plus 500 basis points, 7% floor
|
| Warrants: | No
|
| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date: | Dec. 7
|
| Stock price: | $4.74 at close Dec. 7
|
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