KKR’s financing for buyout of Envision Healthcare to include $2.15 billion bridge to high yield

By Paul A. Harris

Portland, Ore., June 29 – Dealers are expected to attempt to syndicate $2.15 billion of bridge loan debt backing the buyout of Envision Healthcare Corp. by KKR, market sources say.

The bridge is expected to be taken out by means of high-yield bond issuance, they add.

Citigroup will lead the syndication effort, a sellside source said on Friday.

Timing on the deal has not yet been announced, sources say.

However, the deal is part of a growing pipeline of merger and acquisition financing headed for the high-yield market during the second half of 2018, they add.

The $8.05 billion of debt backing the acquisition of Envision will also include term loan debt, with Credit Suisse leading its placement.

In addition to Credit Suisse and Citigroup, investment banks participating in that debt financing include Morgan Stanley, Barclays, Goldman Sachs, Jefferies, UBS, RBC, HSBC, Mizuho and KKR Capital Markets.

Other funds for the transaction will come from up to $3.5 billion in equity.

KKR is buying Envision for about $9.9 billion, including repayment of Envision debt.

The acquisition is expected to close in the fourth quarter of 2018.

Envision is a Nashville, Tenn.-based provider of physician-led services and post-acute care, and ambulatory surgery services.

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