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Dr. Software Co. Retires 'B' Loan

22 Jul 2004

Per-Se Technologies, an Atlanta-based software provider to physicians and hospitals, has retired its $118.8 million "B" loan through the sale of $125 million of 20-year 3 1/4% convertible subordinated debentures.

Per-Se Technologies, an Atlanta-based software provider to physicians and hospitals, has retired its $118.8 million "B" loan through the sale of $125 million of 20-year 3 1/4% convertible subordinated debentures. As part of the refinancing, Per-Se also increased its revolver from $50 million to $75 million, reduced the spread on the line and extended the maturity until June 2007. The debentures and increased revolver provide the company with greater flexibility, stated Michelle Howard, v.p. of investor relations.

Howard said the timing was based on the convertible market, which Per-Se had been eyeing for some time. The convertible proceeds also funded a $25 million stock repurchase. Pricing on the revolver was decreased from LIBOR plus 3-3 1/2% to LIBOR plus 2 1/2-3%. The "B" loan was originally $125 million and carried a spread of LIBOR plus 4 1/4%. The revolver and "B" loan were put in place in September to refinance 9 1/2% notes. Bank of America and Wachovia Securities led the amendment as well as the previous credit.

22 Jul 2004