Surgery Center talks $1.29 billion term loan at Libor plus 325-350 bps

By Sara Rosenberg

New York, June 7 – Surgery Center Holdings Inc. launched on Wednesday its $1.29 billion seven-year senior secured covenant-light term loan with price talk of Libor plus 325 basis points to 350 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $1,365,000,000 of senior secured credit facilities also include a $75 million five-year revolver.

Jefferies LLC and KKR Capital Markets are the arrangers on the deal.

Commitments are due on June 21, the source added.

Proceeds will be used to help fund the acquisition of National Surgical Healthcare Inc. from Irving Place Capital for about $760 million and to refinance an existing term loan.

Other funds for the transaction are expected to come from $335 million of bonds.

Also, with the transaction, Bain Capital Private Equity will acquire H.I.G. Capital’s existing equity stake in Surgery Partners.

Preferred equity coming from Bain for the transaction will be around $295 million.

Closing is expected this year, subject to regulatory approvals and other customary conditions.

Surgery Center is a Nashville-based health care services company. National Surgical is a Chicago-based owner and operator of surgical facilities in partnership with local physicians.

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