Surgical Care Affiliates, Inc. (NASDAQ:SCAI) (“SCA”) today announced that it intends to pursue a refinancing of its existing term loan facility, under which $444.4 million is currently outstanding, and to obtain an incremental term loan under its credit facility. SCA intends to replace the existing term loan facility with a new $444.4 million term loan facility and to obtain an incremental term loan of $150 million in aggregate principal amount. SCA is initiating the syndication process at this time in order to take advantage of current favorable conditions in the debt capital markets and in advance of the upcoming presidential election. Proceeds from the new term loan facility are expected to be used to repay all outstanding borrowings under the existing term loan facility, and proceeds from the incremental term loan are expected to be used to fund ordinary course investments in ambulatory surgery centers and surgical hospitals and for working capital and other general corporate purposes.
SCA intends to launch and close the refinancing and incremental term loan transactions prior to the end of October 2016. However, there can be no assurance regarding the timing of the proposed refinancing and incremental term loan transactions, the terms and interest rate at which SCA’s debt can be refinanced or new loans can be obtained, or that the refinancing and incremental term loan transactions can be completed.