MedQuist amends credit facility to permit acquisition, revise monthly reports deadline

By Sara Rosenberg

New York, July 12 - MedQuist Inc. amended its credit facility, allowing for the acquisition of M*Modal and extending the time period for the delivery of monthly reports to 45 days from 30 days, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Specifically, the amendment provides that the purchase of M*Modal be excluded from acquisition-related covenants.

The amendment was completed on July 11.

General Electric Capital Corp. is the agent on the deal.

Under the agreement, MedQuist is buying M*Modal for $130 million.

The purchase price, which is subject to customary working capital and cash adjustments, is comprised of $48.4 million in cash paid at closing, $28.8 million in installments paid in cash over the next three years and 4.1 million shares of MedQuist common stock currently valued at $52.8 million.

The company will fund the cash component of the purchase price from available cash.

Closing is expected prior to the end of the third quarter, subject to customary conditions, including review under the Hart-Scott-Rodino Act.

MedQuist is a Franklin, Tenn.-based provider of medical transcription services and technology-enabled clinical documentation workflow. M*Modal is a Pittsburgh-based provider of advanced speech and natural language understanding technology.

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