New Issue: Per-Se Technologies $100 million convertible yields 3.25%, up 42%

Nashville, June 24 - Per-Se Technologies Inc. sold $100 million of 20-year convertible notes at par to yield 3.25% with a 42% initial conversion premium via bookrunner Banc of America Securities.

The Rule 144A deal, sold on swap with $25 million of proceeds earmarked to buy back stock sold short by note buyers, priced at the middle of yield talk for a 3.0% to 3.5% coupon but at the aggressive end of premium guidance of 38% to 43%.

After the stock buyback, the company said that, with cash on hand plus funds available on its bank revolver, it would retire its $118.8 million term loan B.

Terms of the deal are:

Issuer:	Per-Se Technologies Inc.
Issue:	Convertible subordinated debentures
Bookrunner:	Banc of America Securities
Amount:	$100 million
Greenshoe:	$25 million
Maturity:	June 30, 2024
Coupon:	3.25%
Price:	Par
Yield:	3.25%
Conversion premium:	42%
Conversion price:	$17.85
Conversion ratio:	56.0243
Contingent conversion:	130%
Dividend protection:	Unknown
Takeover protection:	Unknown
Call:	Non-callable for 5 years
Put:	In years 5, 10 and 15
Price talk:	3.0-3.5%, up 38-43%
Pricing date:	June 24, after the close
Settlement date:	June 30
Distribution:	Rule 144A

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