Cerner restates for $1.25 billion five-year loan with better pricing

By Wendy Van Sickle

Columbus, Ohio, Jan. 4 – Cerner Corp. amended and restated its credit agreement with U.S. Bank NA as administrative agent on Dec. 30 to provide for a $1.25 billion revolver that is due to mature in five years with two one-year extension options, according to an 8-K filing with the Securities and Exchange Commission.

There is a $200 million letter-of-credit sub facility, up from $100 million under the previous revolver, which was sized at $1 billion.

Borrowings bear interest based on Libor plus a margin that depends on net leverage ratio and ranges from 75 basis points to 120 bps. There is also a fee on unused commitments. Cerner said pricing under the restated revolver is more favorable than that of the previous revolver.

There is a $500 million accordion feature, up from $200 million under the previous revolver.

U.S. Bank, Bank of America, NA and PNC Capital Markets LLC are the joint lead arrangers, bookrunners and documentation agents.

As of Dec. 30, there was $600 million outstanding under the facility in addition to letters of credit.

Cerner is a North Kansas City, Mo.-based designer, developer and marketer of health care information technology, health care devices and content solutions for health care organizations and consumers.

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