TriZetto to launch $100 million incremental term loan on Sept. 29

By Sara Rosenberg

New York, Sept. 22 - TriZetto Group Inc. is scheduled to hold a conference call on Sept. 29 to launch its proposed $100 million incremental term loan, according to a market source.

RBC Capital Markets is the lead bank on the deal.

There is no official price talk on the term loan yet, but it is expected somewhere in the Libor plus 400 basis points area with a typical Libor floor and a slight original issue discount, the source said.

Proceeds, along with cash on hand, will be used to repay all of the company's $192 million of mezzanine notes, which would bring the capital structure to all senior debt.

Pro forma leverage for the transaction is 3.2 times.

Currently, the company is out with an amendment to its existing credit facility to allow for the mezzanine repayment with the incremental loan and cash.

Lenders are being offered a 12.5 bps amendment fee.

Consents are due on Tuesday, with the hope being that the amendment will pass and the incremental loan can be launched the following day.

The amendment, which launched with a call on Sept. 21, is also being led by RBC.

TriZetto is a Greenwood Village, Colo.-based health care information technology company to the health care payer industry.

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