Change Healthcare lifts term B to $5.1 billion with bond downsizing

By Sara Rosenberg

New York, Feb. 2 – Change Healthcare upsized its seven-year covenant-light term loan B to $5.1 billion from $4,865,000,000 and trimmed its senior unsecured notes offering to $1 billion from $1,235,000,000, according to a market source.

The term loan B is talked at Libor plus 275 basis points to 300 bps with a 1% Libor floor and an original issue discount of 99.5.

The term loan B has 101 soft call protection for six months.

The company’s now $5.6 billion credit facility, up from $5,365,000,000, also includes a $500 million revolver.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., RBC Capital Markets and SunTrust Robinson Humphrey Inc. are arrangers on the deal.

Proceeds will be used to refinance existing debt and to help fund the creation of the company through the merger of Change Healthcare Holdings Inc. and the majority of McKesson Technology Solutions.

Closing on the merger is expected in the first half of this year, subject to customary conditions.

Change Healthcare is a health care information technology company.

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