Health care back-office services provider Emdeon is hitting up its banks for a better price on its main debt package, a move that comes less than a year after the company last refinanced the loans.
Emdeon officials say they expect to be able to complete the deal this month. They are looking for a lower interest rate on a $1.3 billion term loan and a $125 million revolving credit line. Their refinancing last year chopped almost 2 percentage points off the loan package's interest rates — the term loan had an effective rate of 5.82 percent at the end of 2012 — but the ongoing low interest-rate environment has them looking for more.
Emdeon, which was taken private by Blackstone Group in late 2011, finished last year with about $2 billion in long-term debt, almost double its shareholders' equity. If its refinancing efforts are successful, it would become the latest in a series of large Nashville-area companies to improve its balance sheet so far this year. Among those that have raised new money or refinanced debt are Acadia Healthcare, Ryman Hospitality Properties and Corrections Corp. of America.