Ambulatory provider AmSurg to make public offering of common stock
Proceeds will pay outstanding debt and fund about $500 million of pending acquisitions, company said.
AmSurg, a healthcare player in the ambulatory services sector, announced Monday that it would make public 5.5 million shares of its common stock.
The company will use proceeds from the stock for multiple purposes, it said. This includes repaying outstanding debt and funding about $500 million of pending acquisitions, which are currently under letter of intent and slated to close between now and early 2016.
AmSurg said it would grant the underwriters a 30-day option to purchase as much as 825,000 additional shares of its common stock.
The offering comes weeks after AmSurg was rebuffed in its attempts to acquire TeamHealth, with the latter's board of directors declining a $7.6 billion bid, including 0.768 shares of AmSurg and $15.49 in cash for every share of TeamHealth.
It marked the second time TeamHealth had rejected an offer from AmSurg. The original offer included more than $11 in cash per share of TeamHealth. In a November letter to TeamHealth's board of directors, AmSurg President and CEO Christopher Holden said the proposed merger was "compelling strategically and financially."
"We have a unique window of opportunity to create the best in class provider of outsourced clinical services and truly give physicians a meaningful voice in the consolidation of healthcare," Holden said. "The vision is clear and well understood by every stakeholder."
AmSurg blamed TeamHealth board members for failing to engage with the company, it said on Nov. 2.
AmSurg's Ambulatory Services Division partners with U.S. physicians to acquire and develop ambulatory service centers.
