Merrill Lynch and Credit Suisse First Boston are holding a bank meeting today to launch NDCHealth's new $200 million senior secured credit facility and $175 million 10-year senior subordinated notes offering, said a banker. The bank facility comprises a five-year, $75 million revolver and a $125 million, six-year "B" term loan. The revolver is priced at LIBOR plus 3%, while the "B" piece has an out-of-the-box spread of LIBOR plus 31/2 %. The commitment fee is 1/2% and the credit is rated BB/Ba3.
The Atlanta-based company intends to use the proceeds to pay down its existing revolver and buy back all of its $144.8 million 5% convertible subordinated notes maturing November 2003. The remainder would be for general corporate purposes. Bankers at Merrill and CSFB either declined to comment or did not return calls. NDCHealth is a network-based healthcare information system supplier, developing paperless prescription transmission systems between doctors and pharmacies. A spokeswoman from NDCHealth declined to comment on the credit.