Quality Systems details $300 million five-year revolver via JPMorgan

By Tali Rackner

Minneapolis, April 3 – Quality Systems, Inc. revealed details for its new $300 million five-year amended and revolving credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the administrative agent.

The credit agreement provides for a $10 million sublimit for letters of credit and an up to $10 million sublimit for swingline loans.

There is a $100 million accordion feature, which is available in the form of additional revolving credit commitments and/or term loans.

Borrowings bear interest at Libor plus 150 basis points to 250 bps, depending on Quality Systems’ total leverage ratio.

The commitment fee ranges from 25 bps to 45 bps, also based on leverage.

At closing, interest was equal to Libor plus 150 bps with a 25 bps commitment fee.

The credit agreement also requires the company to maintain both a maximum leverage ratio and a minimum fixed charge coverage ratio of 3 times.

The amended facility matures on March 29, 2023 and replaces the company’s prior $250 million facility.

As of March 29, the closing date, there was $37 million of loans outstanding under the credit agreement.

Proceeds will be available for letters of credit, allowed acquisitions, working capital and general corporate purposes.

U.S. Bank NA is the syndication agent for the deal, and is also a joint lead arranger and bookrunner with JPMorgan. Bank of the West, KeyBank A and Wells Fargo Bank, NA are co-documentation agents.

Based in Irvine, Calif., Quality Systems develops health IT software for medical and dental clients.

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