The $975 million credit for Emdeon Business Services saw pricing on its first and second liens flex down last week after the deal was very well oversubscribed, according to a banker. The banks set pricing on the lower end of what had been talked for the first lien and cut 50 basis points off the second.
The deal originally launched Oct. 25 and consists of a six-year, $50 million revolver; a seven-year, $755 million term loan "B" and a seven-and-a-half-year, $170 million second-lien term loan (CIN, 10/27). Led by Citigroup, Deutsche Bank and Bear Stearns, the revolver was priced at LIBOR plus 2 1/2%, while the term loan "B" was talked at LIBOR plus 2 1/2-2 3/4%. The term loan "B" has been set at LIBOR plus 2 1/2%. Pricing on the second lien was flexed down to LIBOR plus 5% after being oversubscribed about 3.5 times, according to a banker. Syndication is set to close late this week.
The deal is being used by General Atlantic to acquire a 52% interest in Emdeon's business services segment in a transaction valued at approximately $1.5 billion (10/27). Emdeon will retain a 48% interest in the company.