Surgical Care ups term loan to $643 million, finalizes pricing

By Sara Rosenberg

New York, Oct. 20 – Surgical Care Affiliates Inc. upsized its term loan to $643 million from $593 million and set pricing at Libor plus 275 basis points, the low end of the Libor plus 275 bps to 300 bps talk, according to a market source.

Of the total term loan amount, $443 million will be used to refinance/reprice an existing $443 million term loan and $200 million is 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.

The issue price on the incremental debt was tightened to par from talk of 99 to 99.5, while the existing debt continues to be offered at par, the source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

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

Closing is expected before the end of this month.

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

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