Symbion plans new $100 million credit facility via Bank of America

By Sara Rosenberg

New York, May 31 - Symbion Inc. anticipates entering into a new $100 million three-year revolving credit facility in conjunction with the completion of its initial public offering, according to a filing with the Securities and Exchange Commission. Bank of America will lead the syndicate of financial institutions.

The revolver would allow for up to $2 million of standby letters of credit and up to $5 million for swing line loans, the filing said.

Interest on the loan would vary depending on the Nashville, Tenn. surgery center operator's leverage ratio. The commitment fee, also based on the leverage ratio, is expected to range from 37.5 basis points to 50 basis points, the filing said.

Security for the loan is expected to be a first priority lien on substantially all real and personal property of the company and its subsidiaries, all capital stock or other interests in wholly-owned subsidiaries and a pledge of ownership interests in majority owned-subsidiaries.

Proceeds would be used for acquisitions, developments of new centers and working capital, the filing said.

Symbion registered to sell up to $115 million of common stock in its IPO, which will be via Credit Suisse First Boston and Lehman Brothers.

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