Envision Healthcare Declares Closing of Second and Final Stage of Refinancing Transaction

August 09, 2022: -Envision Healthcare, a leading national medical group, declared that it closed the refinancing transaction’s second and final stage, which was initially completed on July 22, 2022. All lenders under Envision Healthcare’s first lien time loan facility were allowed to partake in the trade, with lenders holding approximately 96% of the excellent principal balance under the facility participating. Integrated with the new senior secured first and second lien financing transaction in April, over 97% of Envision’s confirmed lenders have elected to join in support of the Company.

Participating lenders were able to supply their pro rata share of the $300 million new money “first out” tranche underneath the facility, convert certain of their term loans into the “second out” tranche at a 17% discount to par, and restore the remainder of their term loans into the “third out” tranche at par. After the second and final stage of the refinancing transaction, Envision Healthcare’s first lien term loan structure consists of a $300 million “first out” tranche, an around $2.2 billion “second out” tranche, a roughly $1.0 billion “third out” tranche, and an about $153 million “fourth out” tranche.

“The successful participation of Envision Healthcare’s existing term loan lenders in the transaction symbolizes continued support of our business and furnishes us with financial flexibility and growth opportunities,” stated Jim Rechtin, Chief Executive Officer of Envision Healthcare. “With that flexibility, we will continue funding in our clinical teams and the care they deliver.”

The second and final stage of the transaction extended the maturities on all participating term loan debt via March 2027, and it decreased the existing term loan balance by approximately $450 million. Envision Healthcare will continue to strengthen services for the millions of patients who count on Envision Healthcare, persisting to provide resources for clinicians and investing in the teams who sustain both during a period of tension facing the healthcare industry.

Envision Healthcare is a top national medical group serving hospitals and healthcare systems in anesthesiology, hospital medicine, emergency medicine, radiology, surgery, and women’s and children’s care. It functions over 250 ambulatory surgery centers across 34 states via its AMSURG business. The 25,000 clinicians with Envision Healthcare provide care to more than 30 million patients annually.

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