Per-Se Technologies completed a refinancing plan in which the Atlanta-based company was able to reduce its debt levels and annual interest expenses. The refinanced package includes a new $175 million credit and a $146.6 million completed tender offer. Bank of America and Wachovia Securities lead the facility, which includes a $125 million "B" term loan and a $50 million revolver, said Michele Howard, v.p. of investor relations. "We thought they presented the best of ideas," she said of the lead lender selections, explaining that the two banks did not lead the previous $50 million revolver. B of A handles the cash management system for the healthcare business management outsourcing company, Howard stated, explaining Per-Se's past relationship with the bank. GE Capital led the previous credit and is now involved in the new revolver, she noted.
The new deal has a combination of new and old lenders, Howard said, adding that 26 institutions entered the credit. The five-year term loan is priced at LIBOR plus 41/4%, while the three-year revolver is priced in the LIBOR plus 3-31/2% range. The previous revolver was priced at LIBOR plus 21/2%. Royal Bank of Canada, Fleet National Bank and Carolina First Bank are other lenders that joined the syndicate.
Proceeds from the term loan and cash on hand were used to fund the tender offer, which was for $160 million of outstanding 91/2% senior notes. There was also a call that expired earlier this month for the remaining $16.4 million in senior notes, Howard added. B of A was the dealer manager on the tender offer. Through both the tender and credit transactions, Per-Se reduced its debt level by approximately $35 million. Howard said the company's total debt is $125 million with a few capital leases on top of that.