Surgery Partners launches $125 million term loan at 99.27-99.5 OID

By Sara Rosenberg

New York, April 20 – Surgery Partners Inc. (Surgery Center Holdings Inc.) held a bank meeting at 2 p.m. ET on Tuesday to launch a fungible $125 million senior secured incremental covenant-lite first-lien term loan (B1) due August 2024 that is talked with an original issue discount of 99.27 to 99.5, according to a market source.

Pricing on the incremental term loan is Libor plus 325 basis points with a step-down to Libor plus 300 bps at 3.45x secured net leverage and a 1% Libor floor, in line with existing term loan pricing.

Amortization on the incremental term loan is 1% per annum.

Jefferies LLC, Barclays, JPMorgan Chase Bank, KKR Capital Markets and Macquarie Capital (USA) Inc. are the arrangers on the deal.

Commitments are due at noon ET on Friday.

Proceeds will be used to refinance an existing non-fungible $119.1 million add-on first-lien term loan, and to pay applicable prepayment premiums and transaction related fees and expenses.

Closing is expected on Monday.

Surgery Partners is a Brentwood, Tenn.-based operator of short-stay surgical facilities.

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