AmSurg upsizes to $1.1 billion, talks eight-year notes to yield in 5¾% area; pricing Tuesday

By Paul A. Harris

Portland, Ore., July 1 – AmSurg Corp. upsized its offering of eight-year senior notes (B3) to $1.1 billion from $880 million and talked the notes to yield in the 5¾% area, a syndicate source said.

Books close at noon ET Tuesday, and the deal is set to price thereafter.

Official price talk comes in line with earlier guidance in the mid-to-high 5% yield context.

Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., BofA Merrill Lynch, Jefferies LLC and Wells Fargo Securities LLC are the joint bookrunners for the Rule 144A and Regulation S with registration rights offering.

Fifth Third, J.P. Morgan Securities LLC, KeyBanc Capital Markets, Mitsubishi UFJ Securities, U.S. Bancorp Investments Inc., Barclays, BBVA Compass, Deutsche Bank Securities Inc., Goldman Sachs & Co., First Tennessee and Raymond James & Associates Inc. are the co-managers.

The notes come with three years of call protection.

Proceeds, along with cash on hand, will be used to repay debt under the company’s revolver, to repay its senior secured notes due 2020 and to help fund AmSurg’s acquisition of Sheridan Healthcare. Additional proceeds, resulting from the upsizing of the notes offering, will be used to pay down the company’s term loan B.

AmSurg is a Nashville-based acquirer, developer and operator of ambulatory surgery centers.

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