Greenway, Akorn Set Lender Meetings; CLOs See Large IncreaseChristine Idzelis
Greenway Medical Technologies Inc., 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.
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., 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.