Envision Healthcare Announces Closing of Liquidity Enhancement Transactions

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NASHVILLE, Tenn.–(BUSINESS WIRE)–Envision Healthcare, a leading national medical group, today announced that it has closed the first phase of a refinancing transaction with the majority of its preferred term lenders and, separately, having completed a refinancing transaction with its revolving lenders. These transactions align with Envision Healthcare’s long-term commitment to providing high-quality, patient-centric care and helping healthcare partners improve patient access to care when and where they need it. most needed.

As part of the first phase of the term loan refinancing transaction, Envision Healthcare’s first lien term loan facility was amended to include a further $300 million in new funds, in addition to “second” and “third” tranches under the term loan for the conversion of equity loans held by existing senior term lenders. Loans converted to a “second out” tranche do so at a 17% discount to par. In the first phase of the term loan refinancing transaction, the $300 million new funds were fully funded and the loans held by the participating term lenders were converted into their respective tranches.

The second and final phase of the term loan refinancing transaction is expected to close on or about August 1, 2022. Under the second phase, all senior term lenders who did not participate in the first phase of the Term Loan Refinancing Transaction will have the option to participate in the new Term Loan tranches (including providing their pro rata share of the new “first out” money tranche).

Separately, in partnership with lenders under its outstanding revolving credit facility, Envision Healthcare repaid its outstanding revolving credit facility and terminated covenants thereunder while concurrently entering into a new secured revolving credit facility $300 million super senior in some of its subsidiaries in its AMSURG business. The new revolving credit facility matures in May 2026. Credit Suisse is the administrative agent under the new revolving credit facility.

“At Envision, we are focused on investing in our clinical teams and the care they provide,” said Jim Rechtin, CEO of Envision Healthcare. “These transactions give us the flexibility we need to continue to invest in these teams and grow our clinical operations.”

These transactions collectively provide Envision Healthcare and its subsidiaries $300 million in immediate additional capital to invest in the business and pursue growth or other value maximizing opportunities. The transactions also extend the maturities of all participating term loan debt to March 2027, refinance the revolving credit facility maturing in October 2023 and reduce the existing term loan balance by approximately $450 million in principal amount, reflecting the capture of the discount in the “second exit” tranche. Envision Healthcare will continue to strengthen services for the millions of patients who rely on Envision Healthcare, continuing to provide resources to clinicians and investing in the teams that support them during a time of uncertainty facing the healthcare industry. .

Envision Healthcare is a leading national medical group serving hospitals and health systems in specialties including anesthesiology, emergency medicine, hospital medicine, radiology, surgery, and women’s and patients’ care. children. It also operates more than 250 day surgery centers in 34 states through its AMSURG business. Envision Healthcare’s 25,000 clinicians provide care to more than 30 million patients each year.

The organization’s investment banker is PJT Partners LP, its financial advisor is Alvarez & Marsal LLC, and its legal advisor is Kirkland & Ellis LLP.

Contact with Investor Relations:

Jason Carpenter

SVP, Treasury

[email protected]

Contact person for media relations:

Amanda Demarest

Senior Director, Corporate Communications

[email protected]

Source: Envision Healthcare

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