Computer Programs plans $175 million facility for Healthland purchase

By Sara Rosenberg

New York, Nov. 25 – Computer Programs and Systems Inc. has received a commitment for a $175 million credit facility to help fund its acquisition of Healthland Holding Inc., company officials said in a conference call on Wednesday.

Regions Bank is the lead on the deal.

The facility consists of a $50 million revolver, of which $25 million will be drawn, and a $125 million term loan.

Under the agreement, Healthland is being bought from Francisco Partners and other shareholders for $250 million, payable about 65% in cash and 35% in Computer Programs common stock.

Other funds for the transaction will come from $12 million of cash on hand.

Pro forma gross debt is 2.5 times and net debt is 2.2 times.

Closing is expected this quarter, subject to regulatory approval and other customary conditions.

Computer Programs is a Mobile, Ala.-based provider of healthcare solutions for community hospitals. Healthland is a Minneapolis-based provider of integrated technology solutions to rural community and critical access hospitals.

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