Surgery Partners, Inc. Announces Pricing of $279.0 million Public Offering of Common Stock

Rhea-AI Summary

Surgery Partners, Inc. (Nasdaq: SGRY) has priced its public offering of 6,000,000 shares at $46.50 each, aiming to raise approximately $279 million. The offering, closing on or about November 12, 2021, includes a 30-day option for underwriters to purchase an additional 900,000 shares. Proceeds will support general corporate purposes, including acquisitions and debt repayment. BofA Securities, J.P. Morgan, and Jefferies are leading the offering.

Positive

• Expected gross proceeds of approximately $279 million from the offering.
• Proceeds intended for funding acquisitions and repaying debt.

Negative

• Share offering may lead to shareholder dilution.

BRENTWOOD, Tenn., Nov. 09, 2021 (GLOBE NEWSWIRE) -- Surgery Partners, Inc. (Nasdaq: SGRY) (“Surgery Partners”) today announced the pricing of its previously announced underwritten public offering of 6,000,000 shares of its common stock at a public offering price of $46.50 per share. Gross proceeds to Surgery Partners from the offering are expected to be approximately $279.0 million, before deducting underwriting discounts and commissions and other offering expenses payable by Surgery Partners. In addition, Surgery Partners has granted the underwriters a 30-day option to purchase up to an additional 900,000 shares of its common stock, at the public offering price less underwriting discounts and commissions. All of the shares in the offering are being sold by Surgery Partners. The offering is expected to close on or about November 12, 2021, subject to customary closing conditions.

BofA Securities, J.P. Morgan Securities LLC and Jefferies LLC are acting as lead bookrunning managers, and Barclays Capital Inc., SVB Leerink LLC, KKR Capital Markets LLC and Macquarie Capital (USA) Inc. are acting 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 are being 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, when filed, will be available on the SEC’s website at www.sec.gov and may also be obtained, when available, 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 is the pricing for Surgery Partners' public offering?

Surgery Partners has priced its public offering at $46.50 per share.

How many shares are being offered in Surgery Partners' latest public offering?

A total of 6,000,000 shares are being offered.

What are the intended uses of proceeds from the Surgery Partners offering?

Proceeds will be used for general corporate purposes, including acquisitions and debt repayment.

When is the expected closing date for the Surgery Partners offering?

The offering is expected to close on or about November 12, 2021.

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

BofA Securities, J.P. Morgan Securities LLC, and Jefferies LLC are acting as lead managers.