Published on 7/1/2014 in the Prospect News High Yield Daily.
New Issue: AmSurg prices upsized $1.1 billion 5 5/8% eight-year notes at par
By Paul A. Harris
Portland, Ore., July 1 – AmSurg Corp. priced an upsized $1.1 billion issue of eight-year senior notes (B3/B-/) at par to yield 5 5/8% on Tuesday, according to a syndicate source.
The deal was upsized from $880 million.
The yield printed at the tight end of yield talk in the 5¾% area and in line with earlier guidance in the mid-to-high 5% yield context.
Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., BofA Merrill Lynch, Jefferies LLC and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds, along with cash on hand, will be used to repay debt under the company’s revolver, to repay its senior secured notes due 2020 and to help fund AmSurg’s acquisition of Sheridan Healthcare. Additional proceeds, resulting from the upsizing of the notes offer, will be used to pay down the company’s term loan B.
AmSurg is a Nashville-based acquirer, developer and operator of ambulatory surgery centers.
| Issuer: | AmSurg Corp.
|
| Amount: | $1.1 billion, increased from $880 million
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| Maturity: | July 15, 2022
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| Securities: | Senior notes
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| Bookrunners: | Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., BofA Merrill Lynch, Jefferies LLC, Wells Fargo Securities LLC
|
| Co-managers: | Fifth Third Securities, J.P. Morgan Securities LLC, KeyBanc Capital Markets, Mitsubishi UFJ Securities, U.S. Bancorp Investments Inc., Barclays, BBVA Compass, Deutsche Bank Securities Inc., Goldman Sachs & Co., First Tennessee, Raymond James & Associates Inc.
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| Spread: | 346 bps
|
| First call: | July 15, 2017 at 104.219
|
| Equity clawback: | 35% at 105.625 until July 15, 2017
|
| Change-of-control put: | 101%
|
| Trade date: | July 1
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| Settlement date: | July 16
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| Ratings: | Moody's: B3
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| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 5¾% area
|
| Marketing: | Roadshow
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