MedAssets Closes Debt Refinancing, Lowering Interest Rate
<0> MedAssetsRobert Borchert, 678-248-8194 </0>
(NASDAQ: MDAS) announced the completion of a new $750 million senior secured credit facility. Proceeds were used to extinguish the Company’s existing $484 million Term Loan B due 2016 and $150 million revolving credit facility due 2015, of which $90 million was outstanding, and to pay related fees and expenses.
The new senior secured credit facility consists of: a $300 million, 7-year Term Loan B bearing interest at LIBOR plus 2.75 percent subject to a 1.25 percent LIBOR floor; a $250 million, 5-year Term Loan A bearing interest at LIBOR plus 2.50 percent; and, a $200 million, 5-year revolving credit facility bearing interest at LIBOR plus 2.50 percent, of which $50 million was drawn at closing. In addition, the Company terminated forward interest rate swaps associated with the indebtedness that was refinanced.
“As a result of the favorable credit markets, we have been able to enter into a new debt arrangement to achieve a lower average cost of debt, extended maturities, and an improved covenant structure – all of which contribute to a more flexible, longer-term capital structure to support the company's growth objectives,” said Chuck Garner, executive vice president and chief financial officer.
MedAssets (NASDAQ: MDAS) partners with healthcare providers to improve their financial strength by implementing revenue cycle, spend and clinical resource management solutions that help capture revenue, control cost, improve margins and cash flow, increase regulatory compliance, and optimize operational efficiency. MedAssets serves more than 4,200 hospitals and 100,000 non-acute healthcare providers. The company currently manages $48 billion in supply spend and touches over $340 billion in gross patient revenue annually through its revenue cycle solutions. For more information, go to .
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