Mediware talks $300 million term loan B at Libor plus 475-500 bps

By Sara Rosenberg

New York, Sept. 9 – Mediware Information Systems Inc. is talking its $300 million seven-year term loan B at Libor plus 475 basis points to 500 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan B has 101 soft call protection for six months, the source said.

The company’s $330 million credit facility (B2/B) also provides for a $30 million revolver.

Included in the facility is a leverage covenant.

Commitments are due on Sept. 22, the source added.

SunTrust Robinson Humphrey Inc. is the lead bank on the deal that launched with a bank meeting on Thursday.

Proceeds will be used to refinance existing debt and fund a distribution to shareholders.

Net leverage is 4.5 times.

The company had launched in June a $30 million revolver and $300 million term loan for the dividend recapitalization, but that deal was pulled later that same month.

Talk on the term loan prior to it being withdrawn was Libor plus 450 basis points to 475 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Mediware is a Lenexa, Kan.-based provider of specialized health care IT solutions for automating and managing complex health care processes.

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