Envision Healthcare starts roadshow for $1.63 billion eight-year notes offering backing LBO

By Paul A. Harris

Portland, Ore., Sept. 24 – Envision Healthcare Corp. started a roadshow on Monday in San Francisco and Los Angeles for a $1,625,000,000 offering of eight-year senior notes, according to a syndicate source.

The roadshow continues in Los Angeles on Tuesday, travels to New York City on Wednesday, to Boston on Thursday, and returns to New York City on Friday.

The roadshow wraps up on Monday, Oct. 1, and the Rule 144A and Regulation S for life offering is set to price thereafter.

Citigroup Global Markets Inc. is the left bookrunner. Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Barclays, Goldman Sachs & Co. LLC, Jefferies LLC, UBS Investment Bank, KKR Capital Markets, SG CIB, RBC Capital Markets LLC, HSBC Securities, Mizuho Securities USA Inc., BMO Securities, SunTrust Robinson Humphrey Inc. and Credit Agricole CIB are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

Credit ratings remain to be determined.

Proceeds will be used to help fund the buyout of the company by KKR for $46.00 per share in cash, or about $9.9 billion, including the assumption or repayment of debt.

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

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