MedQuist Refinancing (5357U)

TIDMCBAY

RNS Number : 5357U

CBaySystems Holdings Ltd.

18 October 2010

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS IN THAT JURISDICTION.

 
 For immediate release   October 18, 2010

CBaySystems Holdings Limited

("CBay" or the "Company")

MedQuist Debt Refinancing and Directorate Changes

CBaySystems Holdings Limited (AIM: CBAY), a leading provider of integrated clinical documentation solutions for the U.S. healthcare industry, is pleased to announce that, further to the announcement by the Company on October 1, 2010, MedQuist Inc. ("MedQuist"), the 69.5% owned subsidiary of CBay, has now closed its US$310 million financing agreements, consisting of a US$225 million senior secured credit facility, which includes an undrawn US$25 million revolving credit facility, and US$85 million aggregate principal amount of senior subordinated notes.

In addition, the Company notes that in accordance with its October 1, 2010 announcement, MedQuist has paid out a one-time special cash dividend of US$4.70 per share to all MedQuist shareholders of record as of October 11, 2010. CBay's share of this dividend payment was equivalent to US$122.6 million. MedQuist shares will begin trading ex-dividend on October 18, 2010.

As announced on October 1, 2010, CBay has used its dividend proceeds to repay outstanding CBay indebtedness, including $104.1 million to redeem its convertible senior PIK notes due 2015 held by Koninklijke Philips Electronics.

Further information relating to the NASDAQ listing, exchange agreement, and other matters announced by the Company on October 1, 2010 will be provided shortly.

Directorate Changes

CBay also announces that Mr. Robert Aquilina will assume the role of CEO of CBay with immediate effect, in addition to his role as Executive Chairman. This organizational change will allow Mr. Raman Kumar, founder and former CEO, to focus his attention on CBay's rapidly expanding offshore operations. After this change, Mr. Kumar will hold the positions of Vice Chairman and Director of the Company along with Chairman and CEO of CBay India Pvt. Ltd.

Lastly, the Company announces the resignation from the Company's Board of Mr. Atim Kabra. Mr. Robert Aquilina said: "I would like to offer my sincere thanks to Atim Kabra on behalf of the Board and to acknowledge his valuable contribution to the development of the Company."

For further information please visit www.cbaysystems.com or contact:

 
 CBaySystems Holdings Limited 
 Clyde Swoger, Chief Financial Officer   Tel: +1- 866-295-4600 ext: 
  ir@cbaysystems.com                                           3355 
 
 Strand Hanson Limited - Nominated        Tel: +44 (0) 20 7409 3494 
  Adviser 
  Rory Murphy 
  Liam Buswell 
 
 Buchanan Communications 
 Mark Court / Suzanne Brocks              Tel: +44 (0) 20 7466 5000 
  markc@buchanan.uk.com 
  suzanneb@buchanan.uk.com

About CBay

CBay is a leading provider of integrated clinical documentation solutions for the U.S. healthcare industry. CBay serves healthcare providers with a broad range of solutions including voice capture and automated speech recognition solutions, medical transcription, document management, billing, and coding services. These services are provided to more than 2,400 health systems, hospitals and physician practices throughout the United States. The Company's services enable customers to improve the quality and timeliness of clinical data and information, reduce operational costs, increase physician satisfaction, enhance revenue cycle performance and facilitate the adoption and utilization of Electronic Health Record (EHR) systems.

CBay is composed of a portfolio of businesses, including CBay Systems & Services Inc., CBay Systems (India) Private Ltd, Spheris India Private Ltd., Mirrus Systems Inc. and a majority shareholding of approximately 69.5% in MedQuist. CBay trades under the CBAY symbol on the AIM of the London Stock Exchange, while MedQuist trades under the MEDQ symbol on the NASDAQ.

The information contained herein is not for publication or distribution in the United States of America. These materials do not contain or constitute an offer to sell, or the solicitation of an offer to buy, securities in the United States.

Statements made in this press release that are forward-looking in nature may involve risk and uncertainties. These statements include, without limitation, statements regarding the terms of the transactions described herein and any other statements that are not historical facts. These risks and uncertainties include the timing and satisfaction of conditions for the proposed transactions. Other risks and uncertainties relating to our business and our financial condition are more fully described in publicly-filed documents of CBay, including CBay's Annual Reports.

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This information is provided by RNS

The company news service from the London Stock Exchange

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