Executives at Nashville-based Emdeon say they plan to issue $250 million of debt to help fund their planned $910 million acquisition of Altegra Health. The six-year notes are being marketed via a private offering. Florida-based Altegra markets analytics and risk management services to insurers and in the past 12 months rang up adjusted EBITDA of $59 million on revenues of $212 million. Adding it to Emdeon will grow the company's annual sales to $1.6 billion.
A Hendersonville-based revenue cycle manager has taken over some of the billing services work of a Missouri hospital owned by the Mercy network. Xtend Healthcare's contract comes as Mercy officials reportedly laid off about 40 people at the 886-bed hospital. Read more here.
Revenue cycle manager and clinical information exchange company Emdeon says it is looking to add $160 million to its term loan borrowings. The new funds will go toward general corporate purposes, including acquisitions. (The company recently said it will buy Change Healthcare for up to $185 million.) Emdeon execs say they expect the transaction will be done before New Year's. As of Sept. 30, the company had total long-term debt of $2 billion — almost $1.3 billion of it in senior secured term loan — versus shareholders' equity of about $900 million.
POSTDATA: WARRANTY DEEDS