Surgical Care to launch $594.4 million term loan on Thursday

By Sara Rosenberg

New York, Oct. 11 – Surgical Care Affiliates Inc. is set to hold a lender call on Thursday to launch a $594.4 million term loan, according to sources.

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

The term loan includes $444.4 million that will be used to refinance/reprice an existing $444.4 million term loan, and $150 million in incremental debt that will be used to fund ordinary course investments in ambulatory surgery centers and surgical hospitals and for working capital and other general corporate purposes.

Price talk on the term debt is Libor plus 275 basis points to 300 bps with a 1% Libor floor, a par issue price on the existing loan and an original issue discount of 99 to 99.5 on the incremental, sources said.

The term debt will get 101 soft call protection for six months.

Closing is expected before the end of this month.

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

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