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Allscripts Closes $650 Million Of New Senior Secured Credit Facilities

CHICAGO, July 2, 2013 /PRNewswire/ -- Allscripts announced today that it has closed its new senior secured credit facilities and completed other previously announced capital structure initiatives. 

Allscripts recent capital structure initiatives provide the Company with improved capital efficiency as well as enhanced financial flexibility by extending debt maturities, increasing liquidity and lowering the Company's cash interest costs.  With the successful completion of these activities, Allscripts is well positioned to maximize its focus on long-term strategic growth initiatives.

Specific capital structure enhancements include:
  • The closing of $650.0 million of new senior secured credit facilities (the "Senior Credit Facilities") on June 28, 2013 consisting of:
    • a five-year $225 million senior secured term loan; and
    • a five-year $425 million senior secured revolving credit facility. 
  • Issuance of $345.0 million of 1.25% cash convertible senior unsecured notes (the "Convertible Notes") due 2020, completed on June 18, 2013. 

Commenting on today's announcement, Richard J. Poulton, Allscripts Chief Financial Officer said, "These highly successful transactions, consisting of almost $1.0 billion in financing activities, were very well received by institutional investors and lenders and represent an emphatic vote of confidence in Allscripts long-term outlook. 

"The closing of the new credit agreement creates additional strength and lends improved efficiency to Allscripts capital structure.  In addition to improving our debt maturity profile and reducing our cash interest expense, we have significantly enhanced our financial flexibility.  As a result of these activities, the Company will have over $400 million of available liquidity in support of our long-term strategic growth initiatives."

Senior Credit Facilities

As of March 31, 2013, the Company had approximately $544 million of borrowings under its previous senior credit facilities.  Certain proceeds under the new Senior Credit Facilities were used to repay the previous senior credit facilities which the Company chose to cancel.  In addition, the Company paid down the remaining $39 million of seller notes and deferred purchase price obligations incurred in connection with the Company's acquisition of dbMotion, Ltd. 

Borrowings under the new Senior Credit Facilities will bear interest, at the Company's option, at a rate per annum equal to either (1) a floating Eurodollar rate based on LIBOR, or (2) the highest of (a) the prime rate, (b) the federal funds effective rate from time to time plus 0.5%, and (c) the Eurocurrency Rate for a one month interest period plus 1.0%, plus, in each case, the applicable margin. The applicable margin for borrowings under the Company's new Senior Credit Facilities will initially be 1.25% for all loans except for loans based on the Eurocurrency Rate, for which the applicable margin will initially be 2.25%. 

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