• Surgery Partners cast aside a plan to issue $100 million of holding company debt to finance the acquisition. Instead, the company will increase the size of two term loans, according to the report.
• Standard & Poor’s Ratings Service gave the company a stable outlook, a “B” rating. S&P predicts moderate cash flow and stable margins, but mentioned the risk of integration on such a large scale.
• Moody’s Investors Services gave Surgery Partners a ‘B3’ rating. Moody’s attributed its rating to the company’s high level of debt, but offered a positive outlook on the company’s place in a growing industry.
More Articles on Transactions and Valuation Issues:
5 Hospitals Planning or Opening ASCs
AmSurg Completes $2.35B Sheridan Acquisition
Foundation Healthcare Refinances Debt
Credit Agencies Offer Mixed Forecast for Surgery Partners Outlook Post-Symbion Acquisition
The $792 million Surgery Partners and Symbion deal is expected to close in the fourth quarter of this year, according to a Tampa Bay Business Journal report. Here are three things to know about Surgery Partners’ company outlook, as forecasted by credit rating agencies.
http://www.bizjournals.com/tampabay/blog/morning-edition/2014/07/all-eyes-on-surgery-center-symbion-integration-in.html
• Surgery Partners cast aside a plan to issue $100 million of holding company debt to finance the acquisition. Instead, the company will increase the size of two term loans, according to the report.
• Standard & Poor’s Ratings Service gave the company a stable outlook, a “B” rating. S&P predicts moderate cash flow and stable margins, but mentioned the risk of integration on such a large scale.
• Moody’s Investors Services gave Surgery Partners a ‘B3’ rating. Moody’s attributed its rating to the company’s high level of debt, but offered a positive outlook on the company’s place in a growing industry.
More Articles on Transactions and Valuation Issues:
5 Hospitals Planning or Opening ASCs
https://www.beckersasc.com/asc-transactions-and-valuation-issues/5-hospitals-planning-or-opening-ascs-july-17-2014.html
AmSurg Completes $2.35B Sheridan Acquisition
https://www.beckersasc.com/asc-transactions-and-valuation-issues/amsurg-completes-2-35b-sheridan-acquisition.html
Foundation Healthcare Refinances Debt
https://www.beckersasc.com/asc-transactions-and-valuation-issues/foundation-healthcare-refinances-debt.html
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