Surgery Partners unit talks $400 million five-year notes to yield in 8¾% area; pricing Monday

By Paul A. Harris

Portland, Ore., March 28 – Surgery Center Holdings, Inc. talked its $400 million offering of five-year senior notes (Caa2) to yield in the 8¾% area, according to a syndicate source.

Books close at 2 p.m. ET on Monday, and the Rule 144A and Regulation S for life deal is set to price shortly thereafter.

Jefferies LLC is the left bookrunner. BofA Merrill Lynch, Goldman Sachs & Co. and Morgan Stanley & Co. LLC are the joint bookrunners.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Raymond James and Stifel Nicolaus & Co. Inc. are the co-managers.

The notes become callable after two years at par plus 75% of the coupon.

The issuer is a subsidiary of Nashville, Tenn.-based Surgery Partners, Inc., a provider of surgery and related health care services. It plans to use the proceeds to repay its existing second-lien debt, as well as to pay down its revolver and for general corporate purposes.

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