Misys has secured sufficient funding requirements to satisfy the terms of an upcoming merger of its Raleigh, N.C.-based healthcare unit with Allscripts.
Officials of the London-based banking and healthcare company announced on Monday that they have signed definitive agreements for $325 million in financing to fund a portion of the proposed merger and to replace the company's existing revolving credit facility.
New financing for the merger will be provided by an 18-month, $150 million revolving credit facility by a lending group composed of HSCB Bank plc, the Governor and Company of the Bank of Ireland and the Royal Bank of Scotland plc, Misys officials announced. The remaining $175 million in financing will be provided by ValueAct Capital, the company's largest shareholder at 26 percent, under a subordinated credit facility for a 20-month term.
In addition, company officials announced that $150 million in proceeds from the March 2008 equity offering was unaffected by the recent announcement that Lehman Bothers had filed for bankruptcy. Those proceeds were underwritten by ValueAct Capital.
Misys and Allscripts had announced plans on March 18 to merge Misys Healthcare with Chicago-based Allscripts, with Misys getting $305 million in financing from Lehman Brothers. Lehman Brothers then filed for Chapter 11 bankruptcy on September 15, forcing both Misys and Allscripts to postpone shareholder meetings until October 6 to discuss the planned merger.