Amsurg plans new financing for Sheridan Healthcare purchase

By Sara Rosenberg

New York, May 29 - Amsurg Corp. has received a financing commitment from Citigroup to help fund its acquisition of Sheridan Healthcare from Hellman & Friedman LLC, company officials said in a conference call on Thursday.

The debt financing would be for an amount up to 6 times leverage, officials remarked.

Over the next two to three years, the company is targeting leverage in the low 4 times range.

Other funds for the $2.35 billion acquisition will come from the expected issuance to Sheridan's equity holders of Amsurg equity currently valued at around $615 million.

However, Amsurg may replace a substantial portion of the equity consideration with cash by accessing the equity or equity-linked markets between signing and closing.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Amsurg is a Nashville, Tenn.-based acquirer, developer and operator of ambulatory surgery centers. Sheridan Healthcare is a Sunrise, Fla.-based provider of multi-specialty outsourced physician services to hospitals, ambulatory surgery centers and other healthcare facilities.

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