Emdeon Inc. plans to secure a $1.2 billion covenant-lite term loan to help finance its $3 billion buyout by Blackstone Group.
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Bank of America Merrill Lynch, Barclays and Citigroup aim to price the loan at 4.75 percentage points over the London interbank offered rate, with a 1.5% Libor floor, according to a filing with the Securities and Exchange Commission. The loan's cov-lite nature could make it difficult for the banks to syndicate it to investors.
The loan package also includes a $125 million revolving line of credit.
The Nashville, Tenn., company, which provides automated payment services to the health care industry, also plans to price $750 million in unsecured notes. The bond offering is backed with a $750 million bridge loan.
