Surgery Partners closed an incremental term loan amendment, which provided for the issuance of a $180 million senior secured incremental term loan under the borrower’s credit agreement, dated August 31, 2017
According to a related 8-K filing, Jefferies Finance served as administrative agent and collateral agent for the transaction.
The proceeds will 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 LIBOR plus a margin of 3.25% per annum or an alternate base rate (which will be the highest of 1) the prime rate, 2) 0.5% per annum above the federal funds effective rate, 3) one-month LIBOR + 1.00% per annum and 4) 2.00% per annum) plus a margin of 2.25% per annum.
The 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 re-position our portfolio for growth through additional strategic investments,” stated Tom Cowhey, chief financial officer of Surgery Partners.
Founded in 2004 and headquartered in Brentwood, TN, Surgery Partners is a 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.
