|[December 13, 2012]
MedAssets Closes Debt Refinancing, Lowering Interest Rate
ATLANTA --(Business Wire)--
MedAssets, Inc. (NASDAQ: MDAS) announced the completion of a new
$750 million senior secured credit facility. Proceeds were used to
extinguish the Company's existing $484 million Term Loan B due 2016 and
$150 million revolving credit facility due 2015, of which $90 million
was outstanding, and to pay related fees and expenses.
The new senior secured credit facility consists of: a $300 million,
7-year Term Loan B bearing interest at LIBOR plus 2.75 percent subject
to a 1.25 percent LIBOR floor; a $250 million, 5-year Term Loan A
bearing interest at LIBOR plus 2.50 percent; and, a $200 million, 5-year
revolving credit facility bearing interest at LIBOR plus 2.50 percent,
of which $50 million was drawn at closing. In addition, the Company
terminated forward interest rate swaps associated with the indebtedness
that was refinanced.
"As a result of the favorable credit markets, we have been able to enter
into a new debt arrangement to achieve a lower average cost of debt,
extended maturities, and an improved covenant structure - all of which
contribute to a more flexible, longer-term capital structure to support
the company's growth objectives," said Chuck Garner, executive vice
president and chief financial officer.
Financial Impact of Debt Refinancing
The refinancing is expected to result in approximately $6 million in
annual cash interest savings as the new term loans have a lower
blended interest rate of approximately 3.6 percent per annum compared
t the prior blended interest rate of approximately 4.9 percent per
annum, assuming that LIBOR does not increase.
In the fourth quarter ending December 31, 2012, the Company will incur
one-time charges including a write-off of approximately $20 million of
non-cash deferred financing costs and original issue discount related
to the refinanced indebtedness; and a swap termination charge of
approximately $8 million.
The Company's non-GAAP adjusted EPS guidance for the fourth quarter
and full year of 2012 remains unchanged as the one-time charges will
be added back in its calculation of adjusted earnings per share.
The Company expects the refinancing will be accretive to fiscal 2013
earnings per share by approximately $0.07.
MedAssets (NASDAQ: MDAS) partners with healthcare providers to improve
their financial strength by implementing revenue cycle, spend and
clinical resource management solutions that help capture revenue,
control cost, improve margins and cash flow, increase regulatory
compliance, and optimize operational efficiency. MedAssets serves more
than 4,200 hospitals and 100,000 non-acute healthcare providers. The
company currently manages $48 billion in supply spend and touches over
$340 billion in gross patient revenue annually through its revenue cycle
solutions. For more information, go to www.medassets.com.
Safe Harbor Statement
This Press Release contains forward-looking statements within the
meaning of the Securities Act of 1933 and the Securities Exchange Act of
1934, as amended by the Private Securities Litigation Reform Act of
1995, and include the intent, belief or current expectations of the
Company and its management team with respect to the Company's future
business operations and financial projections and forecasts. Any
forward-looking statements are not guarantees of future performance,
involve risks and uncertainties, and actual results may differ
materially from those contemplated by such forward-looking statements.
Important factors that could cause actual results to differ materially
from those contemplated within this Press Release can also be found in
the Company's Risk Factor disclosures in its Form 10-K for the year
ended December 31, 2011 filed with the Securities and Exchange
Commission and available at http://ir.medassets.com.
The Company disclaims any responsibility to update any forward-looking
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