Covenant Surgical Partners adds $50 million delayed-draw term loan

By Sara Rosenberg

New York, June 19 – Covenant Surgical Partners Inc. added a $50 million delayed-draw first-lien term loan to its capital structure priced at Libor plus 400 basis points, according to a market source.

Also, pricing on the funded $250 million first-lien term loan firmed at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, the source said.

The delayed-draw and funded first-lien term loans have a 0% Libor floor and an original issue discount of 99.

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

The company’s now $435 million of credit facilities, up from $385 million, also include a $35 million revolver and a $100 million privately placed second-lien term loan.

KKR Capital Markets is the lead on the deal.

Proceeds will be used to refinance existing debt and fund acquisitions under letters of intent.

Covenant Surgical is a Nashville, Tenn.-based acquirer and operator of ambulatory surgery centers and physician practices.

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