NASHVILLE, Tenn. – Envision Healthcare, a leading national medical group, today announced that it closed the first phase of a refinancing transaction with a majority of its first lien term loan lenders and, separately, consummated a refinancing transaction with its revolving lenders. These transactions align with Envision Healthcare’s long-term commitment to providing high-quality, patient-centered care and supporting healthcare partners in improving patients’ access to care when and where they need it most.

As part of the first phase of the term loan refinancing transaction, Envision Healthcare’s first lien term loan facility was amended to include a $300 million new money “first out” tranche, in addition to “second out” and “third out” tranches under the term loan for the conversion of participating loans held by existing first lien term loan lenders. Loans converting into the “second out” tranche do so at 17% discount to par. In the first phase of the term loan refinancing transaction, the $300 million new money was fully funded and loans held by participating term loan lenders converted into their respective tranches.

The second and final phase of the term loan refinancing transaction is anticipated to close on or about August 1, 2022. In connection with the second phase, all first lien term loan lenders that did not participate in the first phase of the term loan refinancing transaction will have the opportunity to participate in the new tranches of term loans (including providing their pro rata share of the new money “first out” tranche).

Separately, in partnership with lenders under its outstanding revolving credit facility, Envision Healthcare paid down its outstanding revolving credit facility and terminated the commitments thereunder while simultaneously entering into a new $300 million super senior secured revolving credit facility at certain of its subsidiaries in its AMSURG business. The new revolving credit facility is set to mature in May 2026. Credit Suisse is the administrative agent under the new revolving credit facility.

“At Envision we are focused on investing in our clinical teams and the care they deliver,” said Jim Rechtin, Chief Executive Officer of Envision Healthcare. “These transactions give us the flexibility we need to continue to invest in those teams and grow our clinical operations."

These transactions collectively provide Envision Healthcare and its subsidiaries with $300 million in immediate incremental capital to invest in the business and pursue growth or other value-maximizing opportunities. The transactions also extend the maturities on all participating term loan debt through March 2027, refinance the revolving credit facility due October 2023 and reduce the existing term loan balance by approximately $450 million in principal amount, reflecting discount capture in the “second out” tranche. Envision Healthcare will continue to strengthen services for the millions of patients who count on Envision Healthcare, continuing to provide resources for clinicians and investing in the teams who support both during a period of uncertainty facing the healthcare industry.

Envision Healthcare is a leading national medical group serving hospitals and healthcare systems in specialties such as anesthesiology, emergency medicine, hospital medicine, radiology, surgery and women’s and children’s care. It also operates more than 250 ambulatory surgery centers across 34 states through its AMSURG business. The 25,000 clinicians with Envision Healthcare deliver care to more than 30 million patients every 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.

Investor Relations Contact:

Jason Charpentier
SVP, Treasury

Media Relations Contact:

Amanda Demarest
Sr. Director, Corporate Communication