Wachovia Securities and Bank of America launched syndication last Thursday of a $175 million refinancing credit for Atlanta-based Per-Se Technologies. The credit includes a $125 million, five-year "B" loan and a $50 million, three-year revolver. Proceeds from the deal will go toward refinancing $160 million of outstanding 91/2% senior notes. Exact pricing could not be confirmed on the facility, but the company said in a release that it expects that the new debt will have interest rates in the 5-6% range. In April of 2001, Per-Se completed a $50 million revolver led by GE Capital, priced at LIBOR plus 21/2%. Wachovia and B of A bankers did not return calls.
The physician practice management services provider announced last week that it commenced a cash tender offer for the notes due 2005. It also announced that it has called $30 million of the notes at the redemption price of 1023/8% plus interest. Moody's Investors Service rated the new credit at B2, citing limited asset coverage available to secured creditors. However, Moody's does say that the refinancing transactions will "contribute to an immediate improvement in the company's credit metrics." Per-Se will also use proceeds from its Product1 product line divestiture to pay down the debt. Chris Perkins, executive v.p. and cfo of Per-Se, did not return calls.