L.O.T.W. #126 - Veradigm Inc.- secures new term loans to bolster liquidity
Fully funded term loan and delayed draw term loan provided by funds managed by Francisco Partners
Veradigm strengthened its balance sheet with a new $100 million senior secured credit facility. The company drew $75 million at close, with the remaining $25 million available at its option through December 2026. The five-year loan bears interest at SOFR + 750 bps, payable in cash or PIK through mid-2027, with no warrants or equity kickers attached.
👓At a Glance
Borrower: Veradigm, Inc.
Lender: Wilmington Savings Fund Society FSB (Admin. & Collateral Agent)
Deal Size: $100.0 million
Structure: Term loan and delayed draw term loan
Rate: Variable - SOFR (subject to 2.00% floor) plus 7.50% payable in cash or in kind
Term: ~60 months
Use of Proceeds: Purchase (if required) of convertible senior notes and general corporate purposes
Source: SEC 8-K
📷Borrower Snapshot
Sector: Healthcare
Subsector: Healthcare Technology
Ownership: Public
Commercial Stage: Commercial Revenue; EBITDA +
Business Overview: Veradigm is a healthcare technology and data solutions company based in Chicago, serving providers, payers, and life sciences organizations. Its product suite includes electronic health records, practice management tools, revenue cycle services, patient engagement platforms, and real-world data analytics. Through its interoperable Veradigm Network, the company connects key stakeholders to enable more efficient clinical workflows, improve outcomes, and support evidence generation for life sciences. Veradigm’s solutions aim to reduce costs and drive value across the healthcare ecosystem.
⚙️Structure & Terms
Source: SEC 8-K
Commitment: $100.0 million
$75.0 million term loan funded at close
$25.0 million delayed draw term loan available through December 2026
Maturity: June 18, 2030
Rate: Variable - SOFR (subject to 2.00% floor) plus 7.50% payable in cash or in kind
PIK option available through June 2027
Commitment Fee: 2% structured into original issue discount
Yield Maintenance: Yield protection in year 1
Prepayment Fee: 3% year 1, 1% year 2, 0% thereafter
Covenants:
First Lien Leverage Ratio
Max ratio <= 3.0:1.0
Liquidity
Min. liquidity of $25.0 million