Veritas Capital, which announced April 2 it was buying General Electric's value-based care assets for $1.05 billion, will use $850 million in loans the back the acquisition, according to Reuters.
Here are five things to know.
1. The private equity firm will buy GE Healthcare's enterprise financial management, ambulatory care management and workforce management software assets.
2. The financing includes a $75 million five-year revolving credit facility, a $600 million seven-year secured term loan with a first priority claim and a $175 million eight-year secured term loan with a second priority claim.
3. Goldman Sachs will lead the senior term loan with Barclays and Deutsche Bank, while the junior term loan will be privately placed with pension fund manager PSP Investments.
4. Syndication of the new debt is expected in late May or early June, and equity capitalization is expected to be roughly $275 million based on the $1.05 billion enterprise valuation.
5. The acquisition is expected to close in the third quarter of 2018.
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