MedQuist Inc. said Friday it secured $310 million in financing, and will pay a special dividend of $4.70 in October.
Shares of the medical transcription software and services company jumped to their highest price in almost three years during morning trading.
MedQuist said it entered into an agreement with GE Capital for a $225 million senior secured credit facility and will issue $85 million in senior subordinated notes due in 2016. The credit facility is made up of a $200 million term loan and a $25 million revolving credit facility.
The proceeds will be used to pay the special dividend and to refinance debt from MedQuist’s purchase of the domestic business of clinical documentation technology and services Spheris Inc. in April. MedQuist said it will pay the dividend when the financing agreements close, which it expects will happen around Oct. 15. The dividend will be paid to shareholders of record as of Oct. 11.
In morning trading, MedQuist shares rose $2.24, or 25.6 percent, to $11. Earlier they climbed 30.6 percent to $11.44, which was their highest price since November 2007.