Medaphis Corp., a troubled health-care company, has obtained a commitment for a $210 million bridge loan from Donaldson, Lufkin & Jenrette that it expects to close before the end of the year.
The new credit would refinance a $168 million bank loan, and would be used to provide liquidity for near-term working capital needs and for general corporate purposes, Medaphis said last week.
The bridge loan will be refinanced by a subsequent securities offering of either debt or equity, the company said.
Atlanta-based Medaphis provides business management and other services to doctors and others in the health-care industry. The company's clients include about 20,700 physicians and 2,700 hospitals.
Last month, Medaphis reported a net loss of $80 million for the third quarter and announced it would take a pre-tax charge against earnings to settle a class action.
Interest rates for the new loan facility begin at the prime rate plus 250 basis points, with increasing rates after six months through the loan's maturity on April 1, 1999.
It will be secured by substantially all of the assets of Medaphis and its subsidiaries. It includes a closing fee of 200 basis points and a funding fee of 200 basis points.