BNP Paribas is leading a $95.5 million credit facility for MedAssets that consists of a $65.6 million first-lien tranche and a $30 million second-lien tranche. The first lien is priced at LIBOR plus 43Ž4% and the second at LIBOR plus 10%. A lender meeting is planned to launch syndication tomorrow in New York City, but a banker said there has already been inquiry pre-launch.
The banker explained the firm chose the second-lien structure because it provides the company with a more conservative senior structure. On a senior basis, the debt-to-EBITDA is 1.6 times, he said. If the second-lien loan is included, then it would be 2.9 times total, which is a little high considering the type of company MedAssets is, he added. MedAssets, a group purchasing organization that serves the healthcare market, acquired Health Services Corporation of America in May 2001. As a service company, the company is asset light, the banker noted.