Envision Healthcare moved AmSurg, which made up around half of the physician staffing firm's earnings last year, to a new affiliate, according to The Wall Street Journal.
Envision inked a deal led by investment firms Centerbridge Partners LP and Angelo Gordon & Co. to move about $2.5 billion in collateral away from existing lenders so it could borrow up to $1.3 billion in first-lien loans and $1.3 billion in second-lien loans as part of a plan to repurchase existing debt. The debt repurchase program is expected to lower Envision's indebtedness by around $600 million, but the lenders aren't happy.
Existing lenders said the deal came at their expense, and the lenders are now considering filing a lawsuit, according to the report. The lenders said the deal may violate Envision's debt documents. Envision said it thinks the move is allowed within the terms of their loan documents.
Around 80 percent of AmSurg was moved to a new corporate subsidiary, according to the report.