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Envision increases term loan B size, sets spread at Libor plus 300 bps
By Sara Rosenberg
New York, Nov. 16 – Envision Healthcare Corp. upsized its term loan B to $3,495,000,000 from $3,295,000,000 and firmed pricing at Libor plus 300 basis points, the high end of the Libor plus 275 bps to 300 bps talk, according to a market source.
Also, the original issue discount on the term loan B widened to 99 from 99.5, and the 101 soft call protection was extended to one year from six months, the source said.
The term loan B still has a 0.75% Libor floor.
J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are the lead banks on the deal.
Commitments were scheduled to be due at 1 p.m. ET on Wednesday, the source added.
The credit facility is being done in connection with the merger of Envision Healthcare Holdings Inc. and Amsurg Corp. in an all-stock transaction at a fixed exchange ratio of 0.334 Amsurg shares per Envision share.
Proceeds will be used to help refinance existing credit facilities at Envision and Amsurg, to repay Amsurg’s 2020 notes and for working capital, capital expenditures and other general corporate purposes.
Other funds for the transaction will come from $550 million of senior unsecured notes, downsized form $750 million with the term loan B upsizing.
Envision shareholders will own about 53% percent and Amsurg shareholders will own around 47% percent of the combined company on a fully diluted basis, including preferred shares.
The two companies had combined revenue of more than $8.5 billion and adjusted EBITDA of more than $1.1 billion for the 12 months ended March 31.
Closing is expected by year-end, subject to approval by Envision and Amsurg shareholders and other customary conditions.
Envision Healthcare is a healthcare company with co-headquarters in Nashville, Tenn., and Greenwood Village, Colo.
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