On May 1, 2020, Change Healthcare Inc. completed the sale of its Connected Analytics
business for total consideration of $55.0 million (subject to a customary working capital adjustment), including a $25.0 million note receivable from the buyer. In addition, also on May 1, 2020, Change Healthcare Inc. completed the
acquisition of eRx Network Holdings, Inc. (eRx) at a purchase price of $212.9 million plus cash on the balance sheet. On June 1, 2020, Change Healthcare Inc. completed the purchase of PDX, Inc. for a purchase price of $208.0
Liquidity and Capital Resources
Inc.s principal sources of liquidity are cash flows provided by operating activities, cash and cash equivalents on hand, and potential funds available under its Revolving Facility (defined herein). Principal uses of liquidity are working
capital, capital expenditures, debt service, business acquisitions and other general corporate purposes. Change Healthcare Inc. anticipates cash on hand, cash generated from operations, and funds available under the Revolving Facility will be
sufficient to fund planned capital expenditures, debt service obligations, business acquisitions and operating needs for the next twelve months. Change Healthcare Inc. may, however, elect to raise funds through debt or equity financing in the future
to fund significant investments or acquisitions that are consistent with its growth strategy.
Cash and cash equivalents totaled
$410.4 million and $3.4 million at March 31, 2020 and 2019, respectively, of which $22.2 million and $0 was held outside the U.S., respectively. As of March 31, 2020, $250.0 million had been drawn and $5.1 million
had been issued in letters of credit against the Revolving Facility, leaving $529.9 million available for borrowing. Change Healthcare Inc. also has the ability to borrow up to an additional $1,354.8 million, or such amount that the senior
secured net leverage ratio does not exceed 4.9 to 1.0, whichever is greater, under the Senior Credit Facilities (defined herein), subject to certain additional conditions and commitments by existing or new lenders to fund any additional borrowings.
The balance retained in cash and cash equivalents is consistent with Change Healthcare Inc.s short-term cash needs and investment
objectives. Change Healthcare Inc. may be required to make additional principal payments on the Term Loan Facility (defined herein) based on excess cash flows of the prior year, as defined in the agreement governing the Term Loan Facility.
Refer to Change Healthcare LLCLiquidity and Capital ResourcesOverview for discussion on cash flows.
Senior Credit Facilities and Senior Notes
In March 2017, the Joint Venture entered into a $5,100.0 million term loan facility (the Term Loan Facility), and a
$500.0 million revolving credit facility (the Revolving Facility, together with the Term Loan Facility, the Senior Credit Facilities). Additionally, the Joint Venture issued $1,000.0 million of 5.75% senior notes
due 2025 (the Senior Notes).
The Joint Venture used the initial public offering proceeds received from Change Healthcare Inc.
to repay $805 million of its indebtedness under the Term Loan Facility without penalty in July 2019. The Joint Venture repaid an additional $270 million of its indebtedness under the Term Loan Facility without penalty for a total paydown
of $1,075 million subsequent to the initial public offering.
In July 2019, the Joint Venture amended the Revolving Facility, the
primary effects of which were to increase the maximum amount that can be borrowed from $500.0 million to $785.0 million and to extend the maturity date until July 2024. In the event the outstanding balance under the Term Loan Facility
exceeds $1,100.0 million on December 1, 2023, amounts due, if any, under the Revolving Facility become due and