By Lisa Kerner
Charlotte, N.C., Feb. 2 - Surgery Center Holdings Inc. agreed to issue 12% senior subordinated notes totaling up to $53.8 million to THL Credit, Inc. and Partners Group AG in a private placement, according to a schedule 13D filing with the Securities and Exchange Commission.
The mezzanine financing will be used to help fund Surgery Center's $215 million acquisition of NovaMed Inc.
The notes will mature six months after the company's new senior credit facility but in no event after six years and three months from the closing date.
The notes are slated to close by June 20.
THL and Partners will be entitled to participate in 0.59% of the $20 million in equity financing to be provided by H.I.G. Bayside Debt & LBO Fund II, LP, manager and controlling member of Surgery Centers, the filing said.
As previously reported, Surgery Center also plans to obtain a new $250 million senior secured credit facility to fund the transaction consisting of a $230 million 53/4-year term loan and a $20 million five-year revolver.
Surgery Center is a Tampa, Fla.-based acquirer, developer and manager of free-standing ambulatory surgical centers. NovaMed is a Chicago-based operator, developer and acquirer of ambulatory surgery centers.
| Issuer: | Surgery Center Holdings Inc.
|
| Issue: | Senior subordinated notes
|
| Amount: | $53.8 million
|
| Coupon: | 12%
|
| Maturity: | Six months after the company's senior credit facility matures
|
| Settlement date: | June 20
|
| Distribution: | Private placement
|
| Purchasers: | THL Credit, Inc., Partners Group AG
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
