Surgical Care to launch $600 million credit facility on Tuesday

By Sara Rosenberg

New York, March 2 – Surgical Care Affiliates Inc. is scheduled to hold a lender call at 3 p.m. ET on Tuesday to launch a $600 million senior secured credit facility, according to sources.

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

The facility consists of a $350 million term loan and $250 million revolver, sources said.

Price talk on the term loan is Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99, sources said.

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

Proceeds will be used to refinance an existing credit facility that includes a $132 million revolver and $596 million of term loans and for general corporate purposes, including acquisitions and other development activities.

Additional funds for the refinancing will come from $350 million of new senior unsecured notes, the company said in a news release.

Closing is expected by the end of this quarter.

Surgical Care is a Deerfield, Ill.-based operator of surgical facilities.

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