M*Modal plans new debt financing for buyout by One Equity Partners

By Sara Rosenberg

New York, July 3 - M*Modal Inc. has received a commitment for debt financing to help fund its acquisition by One Equity Partners and refinance existing debt, according to a news release.

Bank of America Merrill Lynch and RBC Capital Markets LLC are leading the financing.

Under the agreement, M*Modal is being purchased for $14 per share in an all-cash transaction that is valued at about $1.1 billion.

One Equity Partners is expected to commence a tender offer for all of the outstanding shares of M*Modal by July 17.

Other funds for the buyout will come from equity.

Closing is expected in the third quarter, subject to a majority of shares being tendered or shareholder approval, the receipt of U.S. antitrust approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

M*Modal is a Franklin, Tenn.-based provider of clinical documentation services and speech understanding services.

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