Bear Stearns launched syndication of a $200 million term loan for United Surgical Partners International on Friday, July 14. Price talk is LIBOR plus 2-2 1/4%, according to a banker. The new term loan will be used to purchase approximately $160 million of 10% senior subordinated notes during an offering, also led by Bear Stearns. The balance of the term loan will pay back existing debt on the company's revolver. The company already has a five-year, $200 million senior revolver led by SunTrust Bank. It is priced between LIBOR plus 1-2 1/4% based on leverage, according to a Securities and Exchange Commission filing.
Dallas-based USPI owns and operates 131 surgical centers in the U.S. and three facilities in London. Standard & Poor's rated both the existing revolver and the new term loan BB- because of the company's singular focus. The ratings agency said that USPI's reliance on one area for revenues leaves it exposed to potential regulatory, reimbursement and technology changes in the outpatient surgery field. Calls to Mark Kosper, cfo, were referred to a spokesman who did not return calls.