United Surgical sets structure on $590 million facility ahead of Thursday launch

By Sara Rosenberg

New York, March 28 - United Surgical Partners International Inc. came out with an official structure on its proposed senior secured credit facility, which will carry a total size of $590 million (B), as the deal is getting ready to launch with a bank meeting on Thursday, according to a market source.

Tranching on the facility is comprised of a $100 million six-year revolver, a $100 million seven-year final maturity delayed-draw term loan and a $390 million seven-year term loan, the source said, adding that official price talk on the deal is not yet available.

Based on filings with the Securities and Exchange Commission, it was previously expected that the facility would be sized at $665 million, consisting of a $100 million six-year revolver, a $100 million seven-year final maturity delayed-draw term loan and a $465 million seven-year term loan, with all three tranches expected to be priced at Libor plus 250 basis points.

Citigroup, Lehman, SunTrust, UBS and Bear Stearns are the lead banks on the deal.

Proceeds will be used to help fund Welsh, Carson, Anderson & Stowe's buyout of the company 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.

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

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