Greenway, Akorn Set Lender Meetings; CLOs See Large Increase

Greenway Medical Technologies Inc. (GWAY), a provider of information technology services to physicians and health-care clinics, plans to meet with lenders next week about its buyout financing as the pace of new collateralized loan obligations increases this month.

Greenway, based in Carrollton, Georgia, set a meeting for Oct. 17 to discuss $570 million of loans backing its purchase by Vista Equity Partners, according to a person with knowledge of the transaction who asked not to be identified because terms aren’t set.

Jefferies Group LLC and Bank of Montreal are arranging the financing, expected to comprise a $360 million first-lien term loan, a $180 million second-lien loan and a $30 million revolving credit line, the person said.

Vista, a private-equity firm that invests in technology-based companies, is taking Greenway private in a cash deal valued at $644 million, according to a Sept. 23 statement. Greenway will be combined with Vitera Healthcare Solutions LLC, a Tampa Florida-based business owned by Vista.

A “large uptick” of about $3 billion in new CLOs this month brings this year’s total to almost $61 billion in the U.S., according to a research note today from Wells Fargo & Co. That’s the most pooled by the funds, which help finance leveraged buyouts, since $104.7 billion in 2007 and compares with $5.3 billion raised in September.

Akorn Loan

KKR & Co., the New York-based buyout firm, said yesterday it agreed to purchase two U.S. manufacturing businesses, Crosby Group and Acco Material Handling Solutions, from Melrose Industries Plc for about $1 billion. Morgan Stanley, UBS AG and KKR Capital Markets are providing debt to finance the deal, expected to be completed by the end of this year.

Akorn Inc. (AKRX), a maker of generic eye-care products, plans a meeting with lenders on Oct. 16 about a $600 million term loan that will fund its purchase of Hi-Tech Pharmacal Co., according to a person with knowledge of the transaction. Akorn, based in Lake Forest, Illinois, is buying Hi-Tech Pharmacal for $640 million to expand into areas including cold and cough treatments, and is relying on JPMorgan Chase & Co. to arrange financing for the deal.

Loan prices averaged 97.49 cents on the dollar today, trailing this year’s high of 98.88 cents in May, according to the Standard & Poor’s/LSTA Leveraged Loan 100 index.

With assistance from Jeannine Amodeo in New York.

To contact the reporter on this story: Christine Idzelis in New York at cidzelis@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.