Greenway flexes $360 million first-lien loan to Libor plus 500 bps

By Sara Rosenberg

New York, Oct. 29 - Greenway Medical Technologies Inc. increased pricing on its $360 million seven-year first-lien term loan to Libor plus 500 basis points from Libor plus 450 bps, according to a market source.

Also, the 101 soft call protection on the first-lien term loan was extended to one year from six months, the source said.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99.

As for the $180 million eight-year second-lien term loan, the original issue discount was tightened to 98½ from 98, the source continued.

The second-lien loan is still priced at Libor plus 825 bps with a 1% Libor floor and still has call protection of 102 in year one and 101 in year two.

With the pricing updates, the company removed the 18-month MFN sunset from the credit agreement.

The company's $570 million senior secured credit facility also provides for a $30 million five-year revolver.

Covenants include a maximum total leverage ratio.

Jefferies Finance LLC and BMO Capital Markets Corp. are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Greenway by Vitera Healthcare Solutions LLC, a portfolio company of Vista Equity Partners, for $20.35 per share, or about $644 million. The combined company going forward will be known as Greenway Medical Technologies.

Other funds for the transaction will come from up to $650 million in equity, or about 51% in the pro forma capital structure.

A tender offer for Greenway's shares has commenced, and completion is subject to conditions, including, among others, the satisfaction of a minimum tender condition and the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The tender offer expires on Nov. 1.

Greenway is a Carrollton, Ga.-based provider of information solutions that improve the financial performance of health care providers. Vitera is a Tampa, Fla.-based provider of end-to-end clinical and financial technology solutions to health care professionals.

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