Surgery Partners closed an incremental term loan of $180 million.
Here are five things to know:
1. The senior secured incremental term loan was taken under Surgery Partners' credit agreement dated Aug. 31, 2017.
2. The company will use the proceeds to fund transactions currently in the pipeline to boost its existing mergers and acquisitions strategy focused on high-growth specialties. The new loan will replenish proceeds Surgery Partners spent during the first half of the year on M&A as well as general corporate purposes.
3. The loan has an annual interest rate equating to LIBOR plus a 3.25 percent margin per year or an alternate base rate plus a margin of 2.25 percent per year.
4. According to CFO Tom Cowhey, the offering was "significantly oversubscribed," allowing the company to increase its incremental term loan facility. "These incremental proceeds will better position us to capitalize on an attractive M&A pipeline and to de-lever our balance sheet by driving adjusted EBITDA growth in fiscal 2019 and beyond," said Mr. Cowhey.
5. The company currently has more than 180 locations in 32 states, including ASCs and surgical hospitals as well as physician practices and urgent care facilities.
"We are pleased to see strong investor demand for our new incremental term loan facility, which underscores the confidence in our strategy as we reposition our portfolio for growth through additional strategic investments," said Mr. Cowhey.