AMSURG Prices $1.1 Bln Senior Unsecured Notes Offering

(RTTNews) - AMSURG Corp. (AMSG) announced that its newly formed wholly-owned unrestricted subsidiary AmSurg Escrow Corp. has priced a private offering of $1.1 billion aggregate principal amount of senior unsecured notes due 2022.

The company said the Notes will be sold to qualified institutional buyers at a price of 100% of the principal amount thereof and will bear interest at a rate equal to 5.625% per annum.

AMSURG stated that the gross proceeds from the sale of the Notes will be deposited into a segregated escrow account subject to customary escrow provisions to secure the Notes, together with a contribution from AMSURG in an amount equal to the accrued interest through the last possible date of mandatory redemption of the Notes, until the proposed transaction with Sheridan is consummated.

Upon consummation of the transaction, the escrowed funds will be released and applied to consummate the transaction, AmSurg Escrow Corp. will merge with and into AMSURG, with AMSURG surviving the merger, and the Notes will be the senior obligations of AMSURG.

AMSURG said it intends to use the net proceeds from this private offering, together with its recently announced registered public offerings of common stock and 5.250% Mandatory Convertible Preferred Stock, additional debt financing and cash on hand, to finance the cash consideration to be paid to consummate the Sheridan transaction, as well as repay borrowings under AMSURG's existing revolving credit facility, repay the outstanding balance of its senior secured notes due 2020 and pay fees and expenses related to the Sheridan transaction.