MedAssets launches $750 million facility at Libor plus 400-425 bps

By Sara Rosenberg

New York, Oct. 28 - MedAssets Inc. launched a $750 million credit facility on Thursday with price talk of Libor plus 400 basis points to 425 bps with a 1.5% Libor floor, according to a market source.

The facility consists of a $150 million five-year revolver and $600 million six-year term loan B.

The term loan B is being offered at an original issue discount of 99 and has 101 soft call protection for one year.

Barclays and JPMorgan are the joint lead arrangers on the deal, with Barclays the left lead and administrative agent.

Financial covenants include a maximum total leverage ratio and a minimum ratio of consolidated EBITDA to cash consolidated interest expense.

Proceeds from the credit facility, along with $360 million of senior unsecured notes, will be used to fund the acquisition of the Broadlane Group and to refinance existing bank debt.

Under the acquisition agreement, MedAssets is buying Broadlane, a Dallas-based end-to-end cost-management partner for health care providers, for roughly $850 million in cash, with $725 million to be paid at closing and $125 million to be paid in January 2012.

The total funded debt will be 5.2 times trailing pro forma adjusted EBITDA, taking into consideration the company's estimate for cost-based synergies.

MedAssets is an Alpharetta, Ga.-based provider of technology enabled products and services for hospitals, health systems and ancillary health care providers.

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