United Surgical LBO financing to include $665 million credit facility, $480 million bonds

By Sara Rosenberg

New York, Feb. 5 - United Surgical Partners International Inc. detailed its leveraged buyout financing package, including plans for a $665 million senior secured credit facility and $480 million of senior subordinated notes, according to an SC 13E3 filed with the Securities and Exchange Commission Monday.

Citigroup, Lehman, SunTrust, UBS and Bear Stearns are the lead banks on the credit facility and the bonds.

The credit facility consists of a $100 million seven-year final maturity delayed-draw term loan, a $465 million seven-year term loan and a $100 million six-year revolver, with all three tranches expected to be priced at Libor plus 250 basis points.

As a backup for the bonds, the company has received a commitment for a $480 million senior subordinated bridge facility.

United Surgical is to be bought by Welsh, Carson, Anderson & Stowe for $1.8 billion, which includes the assumption of certain debt. Holders of United Surgical common stock will receive $31.05 per share in cash for their shares.

In addition to the debt, $852 million of equity will be used to back the LBO.

Closing of the transaction is expected in the second quarter, subject to approval by United Surgical stockholders, required antitrust and other customary closing conditions.

United Surgical is an Addison, Texas, owner and operator of short-stay surgical facilities.

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