Dealers mull private-style execution for Emdeon's $750 million notes

By Paul A. Harris

Portland, Ore., Sept. 30 - Emdeon Inc.'s $750 million of Rule 144A senior notes could come in an execution which more closely resembles a private placement than a widely syndicated junk bond offering, according to a source close to the deal.

Meanwhile the $750 million one-year senior unsecured bridge loan backing the bonds is in the process of syndication, the source added.

Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Goldman Sachs & Co. are the leads.

A bank meeting for the Emdeon $1.2 billion seven-year term loan B is expected to take place during the middle part of the week ahead.

That loan is part of an overall $1.325 billion senior secured credit facility (Ba3) that also includes a $125 million five-year revolver.

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. The transaction is valued at about $3 billion.

Also, the company plans on getting $870 million of equity, along with the rollover of about $330 million of equity.

Following completion of the acquisition, Hellman & Friedman will maintain a significant minority equity interest in the company.

Closing is expected this year, subject to customary conditions, including approval by Emdeon's stockholders and clearance under the Hart-Scott-Rodino Act.

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

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