SGRY - Surgery Partners Inc. Completes Refinancing Transaction | Benzinga
BRENTWOOD, Tenn., Dec. 06, 2023 (GLOBE NEWSWIRE) -- Surgery Partners, Inc. (NASDAQ:SGRY) ("Surgery Partners" or the "Company"), a leading short-stay surgical facility owner and operator, announced today that Surgery Center Holdings, Inc., a wholly owned subsidiary of the Company, has received commitments for a new $1.4 billion senior secured term loan (the "New Term Loan"). Upon closing (such date, the "Closing Date"), the new Term Loan will bear interest at a rate equal to 3.50% per annum in excess of the applicable Secured Overnight Financing Rate (SOFR) index rate (or, at the option of the Company, 2.50% per annum in excess of an adjusted base rate), will mature on the date that is seven years after the Closing Date and will be subject to customary terms and conditions. Additionally, the Company expects to refinance and increase its existing revolving credit facility with a new senior secured revolving credit facility in an aggregate principal amount of approximately $703.75 million (together with the New Term Loan, the "New Credit Facilities") that matures five years after the Closing Date, on customary terms and conditions.
The Company intends to use the net cash proceeds from the New Term Loan to repay in full its existing senior secured term loan due 2026, and to fund transaction fees and expenses in connection with the foregoing. The closing of the New Credit Facilities is subject to customary conditions and is expected to occur in December 2023.
Dave Doherty, Chief Financial Officer of Surgery Partners, noted "We are pleased with the support from investors in our refinanced term loan and ...