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AmSurg cuts Libor floor on $870 million term B, adds pricing step-down
By Sara Rosenberg
New York, July 7 – AmSurg Corp. reduced the Libor floor on its $870 million seven-year covenant-light term loan to 0.75% from 1%, according to a market source.
In addition, while pricing remained at Libor plus 300 basis points, a step-down was added to Libor plus 275 bps when total leverage is less than 4.5 times, the source said.
The term loan B still has an original issue discount of 99¾, 101 soft call protection for six months and amortization of 1% per annum.
Earlier in syndication, the term loan B was downsized from $1.09 billion as the company’s senior unsecured notes offering was upsized to $1.1 billion from $880 million, pricing was cut from Libor plus 325 bps and the discount was tightened from 99½.
The company’s $1.17 billion senior secured credit facility (BB-) also includes $300 million five-year revolver.
Recommitments were due at 5 p.m. ET on Monday, the source added.
Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Bank of America Merrill Lynch, Jefferies Finance LLC and Wells Fargo Securities LLC are joint lead arrangers and bookrunners on the deal.
Proceeds will be used to help fund the company’s $2.35 billion acquisition of Sheridan Healthcare from Hellman & Friedman LLC, to repay revolver borrowings and existing senior secured notes, for working capital and to add cash to the balance sheet.
Other funds for the transaction will come from cash on hand, the issuance of common stock and a mandatory convertible preferred offering.
Closing is expected in mid-July, subject to customary conditions and regulatory approvals.
Amsurg is a Nashville-based acquirer, developer and operator of ambulatory surgery centers. Sheridan Healthcare is a Sunrise, Fla.-based provider of multi-specialty outsourced physician services to hospitals, ambulatory surgery centers and other health-care facilities.
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