Allscripts amends and restates revolver, downsizes to $700 million

By William Gullotti

Buffalo, N.Y., May 2 – Allscripts Healthcare Solutions, Inc., along with Allscripts Healthcare, LLC as co-borrower, entered into a third amended and restated credit agreement on April 29 that downsized its revolving credit facility to $700 million and eliminated its term loan, according to an 8-K filing with the Securities and Exchange Commission.

Previously, Allscripts’ credit agreement was comprised of a $400 million term loan and a $900 million revolver.

The amended $700 million senior secured revolver matures April 29, 2027. The revolver has a $50 million sublimit for letters of credit (of which $10 million is available on a committed basis), a $25 million sublimit for swingline loans and a $100 million sublimit for foreign currency borrowings.

The agreement also provides the potential to add one or more incremental revolving and/or term facilities in an aggregate amount up to $350 million. Subject to certain conditions, further unlimited borrowings may be permitted so long as the pro forma senior secured net leverage ratio does not exceed 2.5 to 1.

Borrowings will bear interest at SOFR, Sonia or Euribor plus a margin ranging from 137.5 basis points to 225 bps, depending on total leverage ratio.

The revolving commitment fee ranges from 17.5 bps to 35 bps.

There will also be a 12.5 bps fronting fee for letters of credit.

As with the previous facility, Allscripts must maintain a minimum interest coverage ratio of 3.5 times and a maximum total leverage ratio of 4.25 times.

Proceeds were used to refinance loans under the previous credit agreement. As of closing, about $175 million of principal remained outstanding with about $1 million letters of credit also outstanding under the revolving facility.

JPMorgan Chase Bank, NA, Fifth Thirds Bank, Keybanc Capital Markets LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC are the lead arrangers and bookrunners.

Bank of America, NA, U.S. Bank, NA, Royal Bank of Canada, PNC Bank, NA and BMO Harris Bank, NA are the co-documentation agents.

JPMorgan is the administrative agent.

Allscripts is a Chicago-based provider of software, connectivity and information services for physicians.

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