TeamHealth plans roughly $4 billion of debt for buyout by Blackstone

By Sara Rosenberg

New York, Oct. 31 – TeamHealth Holdings Inc. has received a commitment for a $3 billion senior secured credit facility and a $1,015,000,000 senior unsecured bridge loan to help fund its acquisition by Blackstone, according to an 8-K filed with the Securities and Exchange Commission on Monday.

JPMorgan Chase Bank, Barclays, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and PSP Investments Credit USA LLC provided the debt commitment.

The credit facility consists of a $400 million revolver and a $2.6 billion term loan.

Under the agreement, TeamHealth is being acquired for $43.50 per share in cash. The transaction is valued at about $6.1 billion.

Other funds for the transaction will come from $2.7 billion of equity.

There is a 40-day “go shop” period.

Closing is expected in the first quarter of 2017, subject to stockholder approval, regulatory approvals and other customary conditions. The transaction is not subject to financing.

Goldman, Sachs & Co. is acting as lead financial advisor, and Citi is acting as co-financial advisor to TeamHealth. BofA Merrill Lynch is acting as advisor to Blackstone on the transaction.

TeamHealth is a Knoxville, Tenn.-based physician services organization.

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