Envision Healthcare Announces Entry into New Senior Secured Funding Facilities

NASHVILLE, Tenn.–(BUSINESS WIRE)–Envision Healthcare, a leading national medical group, today announced that certain of its subsidiaries have entered into new senior secured first and second lien financing facilities. The new senior credit facility in the aggregate amount of $1.3 billion includes initial financing of $1.1 billion and a deferred draw term loan of $200 million. Separately, the new second lien facility consists of loans totaling approximately $1.3 billion.

The new senior credit facility provides Envision with $1.1 billion in immediate additional capital, with up to $200 million in additional capital, to invest in the business and pursue growth opportunities. This includes strengthening services for the millions of patients who rely on Envision Healthcare, continuing to provide resources to clinicians, and investing in the teams that support both.

The new senior credit facility also provides a level of stability in the face of the uncertainty facing the healthcare sector.

Envision Healthcare used the proceeds from the new second lien facilities to effect negotiated redemptions of approximately $1.5 billion in principal of its outstanding first lien Term Loan B due 2025 at a weighted price equal to 66% the applicable principal amount, i.e. $326 million in principal. of its outstanding additional term loans due 2025 at a price equal to 90% of the applicable principal amount, and $87 million in principal amount of its senior unsecured notes at a price equal to 46% of the applicable principal amount. principal applicable. The new senior and junior debt securities will allow Envision Healthcare to potentially make additional value-added open market purchases of its existing debt in the future, thereby strengthening its capital structure.

“We believe these financing transactions will provide our organization with financial flexibility and growth opportunities,” said Jim Rechtin, Chief Executive Officer of Envision Healthcare. “Our priority is to continue to focus on delivering high quality patient care, investing in our teams and caring for communities.

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’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.

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