Emdeon halves bond offer to QIBs; One investor will hold other half

By Paul A. Harris

Portland, Ore., Oct. 5 - The launch of Emdeon Inc.'s proposed senior unsecured notes is near at hand, according to a syndicate source, who added that the bonds could possibly hit the market late this week or else sometime during the week ahead.

However qualified institutional investors will see only half the previously anticipated $750 million amount because a single investor will hold $375 million of Emdeon's nine-year senior notes, the source added.

The deal due to hit the market soon is a $375 million tranche of eight-year senior notes.

With volatility rocking the markets, dealers took a "private placement" approach to marketing the notes in recent days.

The remaining $375 million portion is expected to come via an investor roadshow.

Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and SunTrust Robinson Humphrey are the joint bookrunners for Emdeon's Rule 144A bonds.

In addition to the notes, Emdeon is in the market with a $1.2 billion term loan, which is set to launch at a Thursday bank meeting.

Proceeds will be used to help fund the buyout of the company by Blackstone Capital Partners VI LP for $19.00 per share in cash in a transaction is valued at about $3 billion.

Additional financing comes in the form of a $125 million revolver, as well as a planned $870 million of equity, along with the rollover of about $330 million of equity.

Emdeon is a Nashville-based provider of revenue and payment cycle management services, connecting payers, providers and patients in the U.S. health care system.

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