Misys obtains $325M in funding for Allscripts merger

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Mysis finds two funding sources after Lehman Brothers filed for bankruptcy protection. Image Source: www.blackhawkcenter.org  

Misys has obtained sufficient funding commitments to finance its proposed purchase of shares of Allscripts Healthcare Solutions' common stock as part of a series of transactions that includes the merger of Misys Healthcare Systems, with a subsidiary of Allscripts.

The London-based Misys said that it has signed definitive agreements for $325 million of financing to replace its credit facility with Lehman Brothers. It will use the new credit facilities to fund a portion of the consideration for the purchase of common stock shares of Allscripts.

The new financing will come from two sources: a $150 million revolving credit facility will be provided for a term of 18 months by a lending group comprising HSBC Bank, the Governor and Company of the Bank of Ireland, and the Royal Bank of Scotland; and the remaining $175 million financing will be provided by ValueAct Capital, Misys’s largest shareholder, under a subordinated credit facility for a term of 20 months.

Misys also confirmed that the $150 million of proceeds from Misys’ equity offering in March, which was underwritten by ValueAct Capital, remains in place.