iSOFT Group Limited (ASX:ISF) Restructures Its Senior Debt Facility

Sydney, Dec 23, 2009 AEST (ABN Newswire) - iSOFT Group Limited (ASX:ISF) Australia's largest listed health information technology company today announced it has agreed to restructure its senior secured debt facility to give the company greater flexibility to manage its global operations through additional working capital and funding capacity. The restructuring is expected to be completed before 31 December 2009.

The new facility, for the next three-and-a-half years, consists of a term loan of GBP60 million and a revolving credit facility of GBP60 million. It will replace iSOFT's existing debt facility of GBP107.5 million.

The new term loan will amortise at GBP3.75 million per quarter, with a balloon payment of GBP11.25 million at the end of the term. The revolving facility is available at the level of GBP60 million for the full term. The total facility is subject to improved covenants linked to leverage, interest cover, and debt service cover ratios.

Interest payments are set at Libor plus 3.75%, which can reduce to 3.25% depending on the company's level of leveraging. The new facility has reduced levels of debt servicing compared with the original loan and provides additional working capital and funding headroom through an increase in the revolver to GBP60 million from GBP47.5 million, as well as the removal of GBP25 million of cancellations that existed in the original revolver.

The new facility was arranged in a club deal coordinated by Barclays. Lenders include: Barclays, Clydesdale/Yorkshire banks (wholly owned by National Australia Bank), Westpac, Bank of Ireland, KfW Group, and Banco Santander.

"The restructured facility provides iSOFT with funding certainty through to June 2013," said Gary Cohen, Executive Chairman & CEO. "It also moves our balance sheet away from its previous acquisition footing to one which gives us greater flexibility in managing our working capital as a large and growing global business. We've also extended the range of participating banks to reflect the international scope of our operations."

Contact

Gary Cohen Executive Chairman & CEO iSOFT Group Limited Tel: +61-2-8251-6700 Email: gary.cohen@isofthealth.com Stuart Kelly Director, Corporate Affairs iSOFT Group Limited Tel: +61-2-8251-6769 Mob: +61-404-082-361 Email: stuart.kelly@isofthealth.com