PJT Partners served as investment banker for Envision Healthcare on $2.6 billion in first and second lien financing facilities, while Alvarez & Marsal served as financial advisor and Kirkland and Ellis served as legal advisor.
The new first lien credit facility provides Envision with $1.1 billion in immediate incremental capital, with up to $200 million in additional capital, to invest in the business and pursue growth opportunities. This includes strengthening services for the millions of patients who count on Envision Healthcare, continuing to provide resources for clinicians and investing in the teams who support both.
The new first lien credit facility also provides a level of stability through the uncertainty facing the healthcare industry.
Envision Healthcare used proceeds from the new second lien facilities to consummate negotiated repurchases of approximately $1.5 billion in principal amount of its outstanding first lien term loan B due 2025 at a blended price equal to 66% of the applicable principal amount, $326 million in principal amount of its outstanding incremental term loans due 2025 at a price equal to 90% of the applicable principal amount, and $87 million in principal amount of its senior unsecured notes at a price equal to 46% of the applicable principal amount. The new first and second lien debt instruments will allow Envision Healthcare to potentially complete further value-accretive open market purchases of its existing debt in the future, thereby strengthening its capital structure.
“We believe these financing transactions will provide our organization with financial flexibility and growth opportunities,” Jim Rechtin, CEO of Envision Healthcare, said. “Our priority is to continue to focus on providing high-quality care to patients, investing in our teams and caring for communities.”
