SGRY - Surgery Partners to raise $125M in incremental term loans and convert preferred stock; Q1 prelims seen strong

Surgery Partners (SGRY) plans to raise $125M in incremental term loans to refinance $119M of existing incremental term loans that were raised in April 2020.At current rates, the company estimates savings in excess of $5M in interest expense annually through this refinancing transaction.Also, Surgery Partners plans to convert all of the outstanding 10.00% Series A Convertible Perpetual Participating Preferred Stock into ~22.609M shares common stock on May 17, 2021.In its Q1 prelim update, the company estimates surgical case volumes to be ~125K cases while revenues are seen exceeding $505M.Analysts consensus estimates for revenue stand at $490.4M.Same-facility revenues are projected to increase by ~16 to 17% Y/Y with strong volume growth and net revenue per case growth.Adj. EBITDA is seen crossing $70M while credit agreement EBITDA is expected to exceed $355M; FY adj. EBITDA will be at least $315M.As of Mar.31, 2021, cash and equivalents is expected to be ~$540M.Shares trading 1.3% higher

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Surgery Partners to raise $125M in incremental term loans and convert preferred stock; Q1 prelims seen strong