BRENTWOOD, Tenn. – Surgery Partners, Inc. (NASDAQ:SGRY), a leading healthcare services company, announced the pricing of $800 million in senior unsecured notes due 2032 by its subsidiary Surgery Center Holdings, Inc. The notes, bearing an interest rate of 7.250%, are set to close on April 10, 2024, provided certain conditions are met.
These senior notes will be guaranteed by each domestic wholly-owned subsidiary of the issuer that also guarantees its senior secured credit facilities. The company plans to allocate the net proceeds from the offering to redeem its existing senior unsecured notes due in 2025 and 2027, cover the accrued interest on these notes, and pay related fees and expenses.
Any remaining funds will be directed towards general corporate purposes, which may include financing future acquisitions.
The notes and their guarantees have been offered to qualified institutional buyers in the United States under Rule 144A, and to non-U.S. persons outside the United States under Regulation S. They have not been registered under the Securities Act or any state securities laws and, as such, may not be offered or sold within the United States absent registration or an exemption from these requirements.
Surgery Partners, headquartered in Brentwood, Tennessee, operates over 180 locations across 33 states. Its facilities include ambulatory surgery centers, surgical hospitals, multi-specialty physician practices, and urgent care facilities. The company emphasizes a model that prioritizes high quality and cost-effective surgical and ancillary care.
This announcement comes with the standard caution that it contains forward-looking statements regarding the company's intentions surrounding the offering and the use of proceeds. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from current expectations.
The information for this article is based on a press release statement from Surgery Partners, Inc.
InvestingPro Insights
Surgery Partners, Inc. (NASDAQ:SGRY) is navigating the financial waters with a strategic move to issue senior unsecured notes, aiming to streamline its debt profile and potentially fuel its growth and acquisition strategies.
The company's recent activities in the capital market come at a time when it holds a market capitalization of approximately $3.67 billion. The market appears to be responding to the company's financial maneuvers and growth prospects, with an 8.03% revenue growth over the last twelve months as of Q4 2023, indicating a steady upward trajectory.
Investors keeping a close eye on Surgery Partners will note that the company's stock price movements have been quite volatile. This is an important consideration for those looking to invest in the healthcare services sector, where market fluctuations can significantly impact returns. Despite the volatility, Surgery Partners has demonstrated a strong return over the last five years, suggesting resilience and potential for long-term investors.
An InvestingPro Tip highlights that analysts predict the company will be profitable this year, which could be a turning point for Surgery Partners as it has not been profitable over the last twelve months. This projection, coupled with the anticipated net income growth, could signal a positive shift in the company's financial health and investor sentiment.
For those interested in a deeper dive into the financials and future outlook of Surgery Partners, additional InvestingPro Tips are available. Readers can take advantage of a special offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of data and insights to inform investment decisions. Currently, 5 more InvestingPro Tips are listed for Surgery Partners, providing a comprehensive view of the company's financial landscape.
As the company continues to evolve and adapt to the dynamic healthcare market, keeping up with real-time data and expert analysis through resources like InvestingPro can be invaluable for investors looking to make informed decisions.
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