Bulletin: Surgery Partners Inc.'s Acquisition Plan Does Not Affect Ratings

NEW YORK (S&P Global Ratings) May 11, 2017--S&P Global Ratings said today that its ratings on Nashville, Tenn.-based outpatient surgery provider Surgery Partners Inc. (B/Stable/--) are not affected by the company's planned acquisition of surgical hospital and ambulatory surgery center operator National Surgical Hospitals Inc. (NSH) (B/Stable/--) from Irving Place Capital for approximately $760 million. Also part of the transaction, Bain Capital Private Equity will acquire H.I.G. Capital's existing equity stake in Surgery Partners. The transaction is expected to close during 2017 and remains subject to the receipt of required regulatory approvals and other customary closing conditions. We expect the combined company to issue new debt to refinance existing debt at Surgery Partners and National Surgical. We expect pro forma

...NEW YORK (S&P Global Ratings) May 11, 2017--S&P Global Ratings said today that its ratings on Nashville, Tenn.-based outpatient surgery provider Surgery Partners Inc. (B/Stable/--) are not affected by the company's planned acquisition of surgical hospital and ambulatory surgery center operator National Surgical Hospitals Inc. (NSH) (B/Stable/--) from Irving Place Capital for approximately $760 million. Also part of the transaction, Bain Capital Private Equity will acquire H.I.G. Capital's existing equity stake in Surgery Partners. The transaction is expected to close during 2017 and remains subject to the receipt of required regulatory approvals and other customary closing conditions. We expect the combined company to issue new debt to refinance existing debt at Surgery Partners and National Surgical. We expect pro forma leverage to remain above 8x which is consistent with our current highly leveraged financial risk profile We believe business risk will improve somewhat as a result of the...

Bulletin