Envision Healthcare refinances term loan and replaces revolver

Chicago, July 22 – Envision Healthcare Corp. closed refinancing transactions with its first-lien term loan lenders and separately with its revolving lenders, according to a press release.

The term loan refinancing includes a $300 million new money first-out tranche, in addition to second-out and third-out tranches under the term loan for the conversion of participating loans held by existing first-lien term loan lenders.

Loans converting to a second-out tranche do so at a 17% discount to par.

The $300 million of new money was fully funded and loans held by participating term loan lenders converted into their respective tranches.

The second and final phase of the term loan refinancing transaction is anticipated to close on or about Aug. 1. In connection with the second phase, all first-lien term loan lenders that did not participate in the first phase of the term loan refinancing transaction will have the opportunity to participate in the new tranches of term loans (including providing their pro rata share of the new money first-out tranche).

Envision also entered into a new $300 million super senior secured revolving credit facility at certain of its subsidiaries in its Amsurg business.

The new revolver matures in May 2026.

Credit Suisse is the administrative agent.

The new revolver replaces the company’s outstanding revolving credit facility which was paid down and terminated.

The transactions collectively provide Envision Healthcare and its subsidiaries with $300 million in immediate incremental capital.

In summary, the transactions extend the maturities on all participating term loan debt through March 2027, refinance the revolving credit facility due October 2023 and reduce the existing term loan balance by approximately $450 million in principal amount, reflecting discount capture in the second-out tranche.

The organization’s investment banker is PJT Partners LP, its financial adviser is Alvarez & Marsal LLC and its legal adviser is Kirkland & Ellis LLP.

Envision is a Nashville-based provider of physician-led services and post-acute care and ambulatory surgery services.

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