Envision Healthcare expected to bring $2.15 billion of junk bonds soon after Labor Day

By Paul A. Harris

Portland, Ore., June 29 – Envision Healthcare Corp. is expected to roll out $2.15 billion of high-yield bonds shortly after the extended Labor Day holiday weekend in the United States, which ends Sept. 4, according to a sellside source.

In the interim dealers are expected to attempt to syndicate $2.15 billion of bridge loan debt backing the bonds. The financing is intended to support the buyout of Envision Healthcare by KKR.

As reported, Citigroup is expected to lead the bridge syndication effort.

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, sources added.

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 the 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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