Emdeon Business Services sets Oct. 25 launch for $975 million facility

By Sara Rosenberg

New York, Oct. 18 - Emdeon Corp.'s Business Services segment has scheduled a bank meeting for Oct. 25 to launch its proposed $975 million credit facility, according to a market source.

Citigroup, Deutsche Bank and Bear Stearns are the lead banks on the deal.

The facility consists of a $50 million revolver and $925 million of term loan debt that will be comprised of a first- and second-lien tranche, sources previously told Prospect News.

Proceeds will be used to help fund General Atlantic LLC's acquisition of a 52% interest in the Emdeon Business Services business.

The transaction values the unit at $1.5 billion, according to Emdeon Corp., which is retaining a 48% interest.

General Atlantic will contribute $320 million in equity.

Closing is scheduled for the fourth quarter.

The business services segment provides revenue cycle management and clinical communication services for health care.

Emdeon is a health care business, technology and information services company based in Elmwood Park, N.J. General Atlantic is a Greenwich, Conn., private equity firm.

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