AmSurg completes Sheridan buy

Company revamps credit line as part of $2.3B deal

Ambulatory surgery center operator AmSurg has wrapped up its acquisition of Sheridan Healthcare, paying more than $2.3 billion in cash and stock for the provider of various physician services.

The deal, which was announced just seven weeks ago, takes AmSurg's annual revenues to about $2.2 billion and diversifies its services to include anesthesiology, radiology and emergency medicine, among others. To help finance its purchase, AmSurg executives negotiated a new senior secured credit facility that includes an $870 million term loan and a $300 million revolving credit line. They also sold $1.1 billion of debt that will mature in eight years and will retire debt that is scheduled to mature in 2020.

"This merger enhances AmSurg’s growth profile by increasing our growth opportunities in both the ASC and the outsourced physician services markets," said President and CEO Chris Holden. "At a time of transformation in the healthcare delivery system, AmSurg is well positioned with a unique and compelling combination of value added services that we expect will strengthen our ability to develop new outsourced physician contracts, health system partnerships and payor relationships and increase the clinical integration of ASC anesthesia."

Shares of AmSurg (Ticker: AMSG) rose more than 1 percent Wednesday to $47.61. They're up 11 percent since the day before Holden and his team announced their Sheridan plans.