Surgery Center shifts funds between term loans, updates pricing

By Sara Rosenberg

New York, April 9 - Surgery Center Holdings Inc. upsized its six-year first-lien term loan (B2/B) to $315 million from $305 million and downsized its seven-year second-lien term loan (Caa2/CCC+) to $120 million from $130 million, according to a market source.

Also, pricing on the first-lien term loan firmed at Libor plus 475 basis points, the wide end of the Libor plus 450 bps to 475 bps talk, and pricing on the second-lien term loan was increased to Libor plus 850 bps from talk of Libor plus 775 bps to 800 bps, the source said.

In addition, the original issue discount on the second-lien term loan was widened to 97½ from guidance of 98 to 981/2, while the first-lien term loan discount was unchanged at 99.

Furthermore, the 101 soft call protection on the first-lien term loan was extended to one year from six months, the source continued. The second-lien loan still has hard call protection of 103 in year one, 102 in year two and 101 in year three.

There were also revisions made to the accordion and first-lien term loan amortization.

Both term loans still have a 1.25% Libor floor.

The company's $465 million credit facility also provides for a $30 million five-year revolver (B2/B).

Recommitments were due by 5 p.m. ET on Tuesday, the source added.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance existing debt and return capital to shareholders.

Surgery Center is a Chicago-based operator of ambulatory surgery centers.

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