Executives with Surgery Partners have filed papers with the Securities and Exchange Commission that lay the groundwork for them to raise up to $250 million in various ways.
The recent shelf filing will enable Brentwood-based Surgery Partners to raise new equity or sell new debt instruments. The company says proceeds of any sales — none are in the works at this point — could go toward acquisitions, the repayment or refinancing of debt or adding to working capital.
Through the first nine months of 2019, Surgery Partners CEO Wayne DeVeydt and his team spent nearly $41 million to buy controlling and non-controlling stakes in surgical centers as well as a clinic and a doctor group. That number was on pace to be well below 2018’s $107 million.
It’s more possible that Surgery Partners will look to its debt load with any proceeds from its shelf, particularly since it finished the third quarter with $111 million in cash on its books. As of Sept. 30, the company carried $2.4 billion in long-term debt on its balance sheet, which was more than double its shareholders’ equity. About $400 million of that will come due in April of next year. And on the heels of some big acquisitions in recent years, executives have said they are focusing more on core operations and debt reduction.
“Our third -quarter adjusted EBITDA growth, combined with improving operating cash flows and prudent investments, have started us on a path to achieve our deleveraging goals,” CFO Tom Cowhey said in November.
Shares of Surgery Partners (Ticker: SGRY) were changing hands Monday morning at $15.41, down nearly 4 percent on the day. They have nearly doubled over the past six months after sliding from above $17 to $6 between August 2018 and last August.