New Issue: Surgery Partners unit sells $400 million five-year notes at par to yield 8 7/8%

By Paul A. Harris

Portland, Ore., March 28 – Surgery Center Holdings, Inc. priced a $400 million issue of five-year senior notes (Caa2/CCC+) at par to yield 8 7/8% on Monday, according to a syndicate source.

The yield printed at the wide end of yield talk in the 8¾% area.

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

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.

Issuer:	Surgery Center Holdings, Inc.
Amount:	$400 million
Maturity:	April 15, 2021
Securities:	Senior notes
Left bookrunner:	Jefferies LLC
Joint bookrunners:	BofA Merrill Lynch, BofA Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. LLC
Co-managers:	Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Raymond James & Associates Inc., Stifel Nicolaus & Co., Inc.
Coupon:	8 7/8%
Price:	Par
Yield:	8 7/8%
Call:	Make-whole call at Treasuries plus 50 bps until April 15, 2018, then callable at 106.656
Equity clawback:	35% at 108.875 until April 15, 2018
Change-of-control put:	101%
Trade date:	March 28
Settlement date:	March 31
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	8¾% area
Marketing:	Roadshow

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.