Surgery Partners makes move for financial flexibility, withdraws 2020 outlook due to COVID-19: 4 details

Surgery Partners filed a form 8-K and withdrew its full year 2020 outlook, according to Market Exclusive.

Four details:

1. Surgery Partners signed a credit agreement on Aug. 31, 2017, for a $120 million senior secured revolving credit facility, among other things. The credit agreement has been amended twice since then, most recently on March 25, 2019.

2. The company drew down its available capacity under the $120 million revolving credit facility, excluding $7.1 million capacity for outstanding letters of credit, on March 18. It did so as a precautionary measure designed to increase liquidity and preserve the company's financial flexibility during the coronavirus pandemic.

3. The company withdrew its full-year 2020 outlook, which projected revenue growth in the high single-digits and adjusted EBITDA growth in the double-digit percentage.

4. Many surgery centers around the country are closing to stem the spread of the coronavirus and divert resources and supplies to hospitals on the front lines of caring for patients with the coronavirus. In some areas, ASCs are becoming excess capacity for those patients.

More articles on surgery centers:
21 ASCs with coronavirus restrictions or closures
How gastroenterology practices are responding to COVID-19
How COVID-19 has affected Tenet, HCA Healthcare and Surgery Partners' shares

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