Allscripts Healthcare Solutions gets $150 million incremental term loan

By Angela McDaniels

Tacoma, Wash., June 12 - Allscripts Healthcare Solutions, Inc.'s lenders agreed to lend it an additional $150 million in the form of an incremental term loan, according to an 8-K filing with the Securities and Exchange Commission.

The lenders already provide a $250 million revolving credit facility and a $470 million term loan facility under an amended and restated credit agreement dated March 31, 2011.

The company entered into the incremental assumption agreement with J.P. Morgan Securities LLC, Mizuho Corporate Bank, Ltd., SunTrust Robinson Humphrey, Inc. and other participating lenders on Monday.

The interest rate is Libor plus 150 basis points to 250 bps, depending on the company's total leverage ratio.

The incremental term loan is payable in quarterly installments beginning on Sept. 30. The repayment amount is $3.75 million for payments one through four, $5.63 million for payments five through eight, $7.5 million for payments nine through 12 and $11.25 million for payments 13 through 15. The remainder is due on June 11, 2016.

Proceeds will be used to partially refinance $175 million outstanding under the revolver.

After giving effect to the refinancing and a $20 million voluntary repayment of the revolver, the total debt outstanding under the credit agreement was $498 million as of Monday and the company had $243 million available, net of outstanding letters of credit, under the revolver.

JPMorgan Chase Bank, NA is the administrative agent.

Chicago-based Allscripts-Misys provides software, services, information and connectivity products to physicians and other health care providers.

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