Misys Refinances Allscripts Merger Debt
May 27 2009 - 3:01AM
Dow Jones News
Misys PLC (MSY.LN) said it has completed the refinancing of its
credit facilities used to fund the $330 million merger with
Allscripts last year.
The company said Wednesday that it has agreed a GBP210 million
three-year revolving credit facility, which along with cash
generated from the business will be used to pay down the GBP150
million of debt drawn on its existing facilities and the GBP190
million loan from ValueAct Capital that it used to fund the merger
of Misys' U.S. healthcare business with rival Allscripts.
At the time of the merger last year, Misys was forced to seek
alternative funding after Lehman Brothers collapsed, and its major
shareholder ValueAct stepped in.
The new debt facility consists of an GBP80 million term loan and
a GBP150 million multi-currency revolving credit facility with a
margin range between 2.5% and 3.5% above the London Interbank
Offered Rate, or Libor.
The facilities have been arrange with Barclays Capital, HSBC
Holdings PLC (HSBA.LN), the Royal Bank of Scotland PLC (RBS.LN),
Yorkshire Bank and KFW IPEX-Bank GmbH.
Misys shares closed Tuesday at 156 pence. They have risen 57%
since the start of 2009.
Company Web site: www.misys.com
-By Kathy Sandler, Dow Jones Newswires; 44-207-842-9293; kathy.sandler@dowjones.com