Surgery Partners, Inc. Announces Closing of New $180 Million Incremental Term Loan
24 Oktober 2018 - 2:00PM
Surgery Partners, Inc. (NASDAQ: SGRY) (“Surgery Partners”), a
leading healthcare services company, today announced that Surgery
Center Holdings, Inc., our wholly owned subsidiary, (the
“Borrower”) closed an incremental term loan amendment, dated as of
October 23, 2018 (“the Amendment”), which provided for the issuance
of a $180.0 million senior secured incremental term loan (the
“Incremental Term Loan”) under the Borrower’s credit agreement,
dated as of August 31, 2017 (the “Credit Agreement”). The
proceeds of the Incremental Term Loan are expected to be used to
fund an existing pipeline of transactions consistent with the
existing M&A strategy around high growth specialties, to
replenish proceeds spent on M&A in the first half of 2018
and/or for other general corporate purposes.
The Incremental Term Loan bears interest at a rate per annum
equal to (x) LIBOR plus a margin of 3.25% per annum or (y) an
alternate base rate (which will be the highest of (i) the prime
rate, (ii) 0.5% per annum above the federal funds effective rate,
(iii) one-month LIBOR plus 1.00% per annum and (iv) 2.00% per
annum) plus a margin of 2.25% per annum. The Incremental Term
Loan is subject to maturity, amortization and other terms
consistent with the existing term loans outstanding under the
Credit Agreement on the date of the Amendment.
“We are pleased to see strong investor demand for our new
incremental term loan facility, which underscores the confidence in
our strategy as we reposition our portfolio for growth through
additional strategic investments,” stated Tom Cowhey, Chief
Financial Officer of Surgery Partners. “The offering was
significantly oversubscribed, which enabled us to increase the size
of the incremental term loan facility to $180.0 million. These
incremental proceeds will better position us to capitalize on an
attractive M&A pipeline and to de-lever our balance sheet by
driving Adjusted EBITDA growth in fiscal 2019 and beyond.”
About Surgery Partners, Inc.
Headquartered in Brentwood, Tennessee, Surgery Partners is a
leading healthcare services company with a differentiated
outpatient delivery model focused on providing high quality, cost
effective solutions for surgical and related ancillary care in
support of both patients and physicians. Founded in 2004, Surgery
Partners is one of the largest and fastest growing surgical
services businesses in the country, with more than 180 locations in
32 states, including ambulatory surgery centers, surgical
hospitals, a diagnostic laboratory, multi-specialty physician
practices and urgent care facilities.
Forward-Looking StatementsThis press release
contains forward-looking statements, including those regarding our
M&A strategy and pipeline. These statements can be identified
by the use of words such as “believes,” “anticipates,” “expects,”
“intends,” “plans,” “continues,” “estimates,” “predicts,”
“projects,” “forecasts,” and similar expressions. All forward
looking statements are based on current expectations and beliefs as
of the date of this release and are subject to risks, uncertainties
and assumptions that could cause actual results to differ
materially from those discussed in, or implied by, the
forward-looking statements, including but not limited to, the risks
identified and discussed from time to time in the Company’s reports
filed with the SEC, including the Company’s Quarterly Reports on
Form 10-Q for the quarterly periods ended September 30, 2017 and
June 30, 2017, filed on November 9, 2017 and August 9, 2017,
respectively. Except as required by law, the Company undertakes no
obligation to revise or update publicly any forward-looking
statements to reflect events or circumstances after the date of
this report, or to reflect the occurrence of unanticipated events
or circumstances. In addition, the financial information for
the fiscal year ended December 31, 2017 is unaudited and subject to
quarter-end and year-end adjustments in connection with the
completion of our customary financial closing procedures. Such
changes could be material.
Investors:
Thomas F. Cowhey, Chief Financial OfficerSurgery Partners,
Inc.(615) 234-8940IR@surgerypartners.com
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