AmSurg trims term B to $870 million as bonds upsized to $1.1 billion

By Sara Rosenberg

New York, July 1 – AmSurg Corp. reduced the size of its seven-year covenant-light term loan B to $870 million from $1.09 billion in response to its senior unsecured notes offering being upsized to $1.1 billion from $880 million, according to a market source.

Price talk on the term loan B is still Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99˝, the source said.

The B loan has 101 soft call protection for six months and amortization of 1% per annum.

The company’s now $1.17 billion senior secured credit facility, down from $1.39 billion, also includes $300 million five-year revolver.

Included in the revolver is a total leverage test and minimum interest coverage test, each with 30% cushion to EBITDA to be tested at all times.

Commitments are due at 5 p.m. ET on July 8.

Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Bank of America Merrill Lynch, Jefferies Finance LLC and Wells Fargo Securities LLC are joint lead arrangers and bookrunners on the deal.

Proceeds will be used to help fund the company’s $2.35 billion acquisition of Sheridan Healthcare from Hellman & Friedman LLC, to repay revolver borrowings and existing senior secured notes, for working capital and to add cash to the balance sheet.

Other funds for the transaction will come from cash on hand, the issuance of common stock and a mandatory convertible preferred offering.

Closing is expected in mid-July, subject to customary conditions and regulatory approvals.

Amsurg is a Nashville-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 health-care facilities.

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