Healthcare software firm Netsmart Technologies obtained $2.375 billion in financing to refinance the company’s broadly syndicated loans.
Golub Capital led the financing. Blackstone and KKR were also lenders on the financing, market sources said.
The refinancing repaid all the company’s existing debt. In 2020, the company placed a $915 million term loan B. Later, the company augmented its debt via privately placed incremental loans of $110 million and $130 million, which funded acquisitions. Goldman Sachs was lead arranger on the broadly syndicated loan. Golub provided the incremental financing.
Pricing on the outstanding debt, including both the syndicated loans and the incremental privately placed debt, was L+400, according to market sources.
Following the repayment, Moody’s on Sept. 5 withdrew its B3 corporate ratings for Netsmart and B3 ratings for its senior secured bank credit facilities.
GI Partners and TA Associates Management acquired Netsmart in 2018. The Kansas-based company provides software for health and human services.
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