Citigroup and Lehman Brothers have committed financing for the $1.8 billion acquisition of United Surgical Partners International by an affiliate of private equity shop Welsh, Carson, Anderson & Stowe, according to a filing with the Securities and Exchange Commission. The company announced Jan. 8 it would be acquired for $31.05 per share. The exact amount of the banks' commitments could not be determined. Bankers for both declined comment.
Bear Stearns led a $200 million term loan for USPI back in mid-July to purchase about $160 million of 10% senior subordinated notes and pay back existing debt (CIN, 7/24). Dallas-based USPI owns and operates 131 surgical centers in the U.S. and three facilities in London. Calls to Mark Kosper, cfo, were referred to a spokesman who did not return a call. Calls to a Welsh Carson spokesman were also not returned.