Merrill Lynch and Credit Suisse First Boston are planning to close out NDCHealth's $225 million senior secured credit facility today with a number of concessions to investors. The oversubscribed deal was pumped up in terms of capacity, pricing and fees, said a banker familiar with the situation. The final credit consists of a six-year, $125 million "B" term loan flexed upwards from LIBOR plus 31/ 2% to LIBOR plus 4%. A 2% LIBOR floor was also installed with call protection at 102, 101, the banker added. A five-year, $100 million revolver was upsized from $75 million, with pricing hiked from LIBOR plus 3% to LIBOR plus 31/ 2%. The commitment fee on the revolver stayed at 1/2%. An accompanying offering of 101/ 2% senior subordinated notes due 2012 was increased from $175 million to $200 million, the banker noted. A Merrill official declined to comment, while a CSFB banker did not return calls.
Atlanta-based NDC 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 will be for general corporate purposes. NDC is a network-based healthcare information system supplier, developing paperless prescription transmission systems between doctors and pharmacies. A spokeswoman from NDC declined to comment on the credit beyond stating that the company expected the deal to close before Thanksgiving.