Misys Gets Allscripts Merger Funding
Misys PLC announced this morning that it has signed agreements to obtain the $325 million it needs to fund its proposed merger with Allscripts. A group consisting of HSBC Bank, Bank of Ireland, and Royal Bank of Scotland will provide $150 million as a revolving credit facility over 18 months, while ValueAct Capital will provide $175 million under a subordinated credit facility over 20 months.
A revolving credit facility provides funds that the borrow can draw down and pay at its discretion over the specified time period. A subordinated loan is repayable after all other debt has been satisfied and is therefore riskier to the lender.
It seems that every innovation in the past 50 years has claimed that it would save money and lives. There…