Team Health plans financing via Citigroup for IPC Healthcare purchase

By Sara Rosenberg

New York, Aug. 4 – Team Health Holdings Inc. has received a commitment from Citigroup for financing to back its acquisition of IPC Healthcare Inc., according to a company presentation.

Pro forma net leverage will be 5 times.

The company is targeting low 4 times leverage by the end of 2016 due to expected “robust cash flow”, the presentation said.

Under the agreement, IPC is being bought in an all-cash transaction with an enterprise value of about $1.6 billion or $80.25 per share.

Closing is expected in the fourth quarter, subject to regulatory approval and customary conditions.

Team Health is a Knoxville, Tenn.-based provider of outsourced physician staffing solutions for hospitals. IPC is a North Hollywood, Calif.-based national acute hospitalist and post-acute provider organization.

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