Surgery Partners, Inc. Announces Closing of Public Offering of Common Stock and Exercise in Full of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Surgery Partners, Inc. (Nasdaq: SGRY) completed its public offering of 6,900,000 shares at $46.50 per share, raising approximately $320.9 million. The offering included 900,000 shares from the underwriters' option. Proceeds will be used for general corporate purposes, including acquisitions and debt repayment. The offering was conducted under an effective shelf registration statement filed with the SEC. Major bookrunning managers included BofA Securities and J.P. Morgan.

Positive

• Raised approximately $320.9 million through public offering.
• Funds allocated for acquisitions, debt repayment, and corporate growth.

Negative

• Potential dilution of existing shares.
• -

BRENTWOOD, Tenn., Nov. 15, 2021 (GLOBE NEWSWIRE) -- Surgery Partners, Inc. (Nasdaq: SGRY) (“Surgery Partners”) today announced the closing of its previously announced underwritten public offering of 6,900,000 shares of its common stock at a public offering price of $46.50 per share, which includes 900,000 shares of common stock issued upon the exercise, in full, by the underwriters of an option to purchase additional shares from Surgery Partners. The gross proceeds from the offering, before deducting the underwriter discounts and commissions and other offering expenses, were approximately $320.9 million.

BofA Securities, J.P. Morgan Securities LLC and Jefferies LLC acted as lead bookrunning managers, and Barclays Capital Inc., SVB Leerink LLC, KKR Capital Markets LLC and Macquarie Capital (USA) Inc. acted as joint bookrunning managers for the public offering.

Surgery Partners intends to use its net proceeds from the public offering for general corporate purposes, which may include, but is not limited to, funding acquisitions, repaying indebtedness, capital expenditures and funding working capital.

The shares were offered pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission (the “SEC”) on January 25, 2021. A preliminary prospectus relating to the offering was filed with the SEC and is available on the SEC’s website at www.sec.gov. An electronic copy of the final prospectus supplement and accompanying base prospectus relating to the offering are available on the SEC’s website at www.sec.gov and may also be obtained by contacting BofA Securities NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department, or email at dg.prospectus_requests@bofa.com or J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, Attn: Prospectus Department, 1155 Long Island Avenue, Edgewood, NY 11717, or telephone: 1-866-803-9204 or by email at prospectus-eq_fi@jpmchase.com or Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by telephone: (877) 821-7388, or by e-mail: Prospectus_Department@Jefferies.com or Barclays, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, email: barclaysprospectus@broadridge.com, tel: (888) 603-5847 or SVB Leerink LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525, ext. 6105, or by e-mail at syndicate@svbleerink.com or KKR at 30 Hudson Yards, 7500 New York, New York 10001 or Macquarie Capital (USA) Inc., 125 West 55th Street, New York, NY 10019, Attention: Syndicate Department, telephone: 212-231-1000, or by emailing: MacquarieEquitySyndicateUSA@macquarie.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Surgery Partners

Headquartered in Brentwood, Tennessee, Surgery Partners is a leading healthcare services company with a differentiated outpatient delivery model focused on providing high quality, cost effective solutions for surgical and related ancillary care in support of both patients and physicians. Founded in 2004, Surgery Partners is one of the largest and fastest growing surgical services businesses in the country, with more than 180 locations in 31 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices and urgent care facilities.

Forward-Looking Statements

This press release contains forward-looking statements, including but not limited to, statements relating to Surgery Partners' expectations regarding the completion, timing and size of the proposed public offering and the intended use of net proceeds therefrom. These statements can be identified by the use of words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “continues,” “estimates,” “predicts,” “projects,” “forecasts,” and similar expressions. All forward-looking statements are based on current expectations and beliefs as of the date of this release and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those discussed in, or implied by, the forward-looking statements, including, but not limited to, risks and uncertainties related to the satisfaction of customary closing conditions related to the proposed public offering and the other risks identified in Item 1A under the heading “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, filed on March 10, 2021 and the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021, and September 30, 2021, filed on May 5, 2021, August 4, 2021 and November 3, 2021, respectively. Except as required by law, Surgery Partners does not undertake any obligation to revise or update publicly any forward-looking statements to reflect events or circumstances after the date of this report, or to reflect the occurrence of unanticipated events or circumstances.

Contact:

Surgery Partners Investor Relations
(615) 234-8940
IR@surgerypartners.com

FAQ

What was the offering size for Surgery Partners (SGRY) in November 2021?

Surgery Partners announced a public offering of 6,900,000 shares at a price of $46.50 per share.

How much money did Surgery Partners raise from its stock offering?

The offering raised approximately $320.9 million in gross proceeds.

What will Surgery Partners do with the proceeds from the offering?

The proceeds will be used for general corporate purposes, including acquisitions and repaying debt.

Who were the lead managers for the Surgery Partners public offering?

BofA Securities, J.P. Morgan Securities LLC, and Jefferies LLC were the lead bookrunning managers.