Vitera plans to launch $570 million credit facility in October

By Sara Rosenberg

New York, Oct. 4 - Vitera Healthcare Solutions LLC plans on getting a $570 million senior secured credit facility to help fund its merger with Greenway Medical Technologies Inc., and a bank meeting for the deal is expected to take place this month, according to a market source.

Jefferies Finance LLC and BMO Capital Markets are the joint lead arrangers and bookrunners on the deal.

The facility consists of a $30 million five-year revolver, a $360 million seven-year first-lien term loan and a $180 million eight-year second-lien term loan, according to an SC TO-T filed with the Securities and Exchange Commission on Friday.

Based on the filing, expected pricing on the revolver and the first-lien term loan is Libor plus 450 basis points, with the revolver having a 37.5 bps unused fee and the term loan having a 1% Libor floor, and expected pricing on the second-lien term loan is Libor plus 825 bps with a 1% Libor floor.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Amortization on the first-lien term loan is 1% per annum.

Covenants include a maximum total net funded leverage ratio.

Other funds for the transaction will come from up to $650 million in equity.

Under the agreement, Greenway Medical is being acquired by Vista Equity Partners for $20.35 per share, or about $644 million. Vista will then merge Greenway with its current portfolio company, Vitera.

A tender offer for Greenway's shares has commenced and completion is subject to conditions, including, among others, the satisfaction of a minimum tender condition and the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The tender offer expires on Nov. 1.

Vitera is a Tampa, Fla.-based provider of end-to-end clinical and financial technology solutions to healthcare professionals. Greenway is a Carrollton, Ga.-based provider of information solutions that improve the financial performance of healthcare providers.

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