Allscripts-Misys said to boost loan, cut rates

Allscripts-Misys Healthcare Solutions Inc., the Chicago-based maker of software for the health-care industry, increased the size of its term loan and cut the interest rate it will pay lenders, according to a person familiar with the terms.

The company boosted its term loan A to $470 million from $325 million after an institutional portion was scrapped, the person said, who declined to be identified because the terms are private. Term loan As are sold primarily to banks, while a term loan B is mainly bought by non-bank lenders such as collateralized loan obligations, bank-loan mutual funds and hedge funds.

The software maker's credit line was increased to $250 million from $150 million and $100 million will be drawn at closing, the person said.

Allscripts reduced the interest rate it will pay to 3 percentage points over the London interbank offered rate from a proposed 3.25 percentage points, the person said. Libor is the rate banks charge to lend to each other.

The company will use the loan to fund a share buyback associated with the $1.3 billion acquisition of Eclipsys Corp., according to a June 9 news release. JPMorgan Chase & Co., Barclays Plc and UBS AG are arranging the debt.

Todd Stein, a spokesman for Allscripts, didn't immediately return a telephone call seeking comment.