Surgery Partners, Inc. announced that its wholly‑owned subsidiary, Surgery Center Holdings, will issue $425 million of 7.250% senior unsecured notes due 2032. The notes are being issued under the same series as the company’s 7.250% senior notes originally issued in April 2024, extending the maturity profile of that debt stream.
The company plans to use the net proceeds to repay outstanding borrowings under its revolving credit facility and to strengthen its balance sheet. By refinancing existing debt, Surgery Partners aims to maintain liquidity for future capital deployment and operational needs, positioning the company to support growth initiatives and manage upcoming maturities.
Surgery Partners currently carries a total debt load of approximately $3.89 billion. The company’s Q3 2025 earnings report revealed an EPS of $0.13, missing estimates of $0.19, and revenue of $821.5 million, slightly below expectations. The miss prompted a downward revision of full‑year guidance and a sharp decline in market sentiment. In this context, the new debt issuance serves to shore up liquidity and mitigate the impact of softer volume growth in its core outpatient surgical services.
The decision to raise additional debt is driven by the need to refinance maturing obligations and to preserve working capital amid a competitive outpatient market. By extending the maturity of its debt, Surgery Partners can reduce refinancing risk and maintain flexibility to invest in new facilities and strategic acquisitions, such as its recent joint venture with Baylor Scott & White Health.
The offering is limited to qualified institutional buyers under Rule 144A and non‑U.S. persons under Regulation S, and is not registered under the Securities Act. The notes will be guaranteed on a senior unsecured basis by each domestic wholly‑owned subsidiary that guarantees its obligations under its senior secured credit facilities.
The issuance reflects Surgery Partners’ ongoing strategy to manage leverage while supporting growth in the outpatient surgical sector, a market that continues to shift procedures from inpatient to outpatient settings. By securing a low‑cost debt source, the company aims to maintain financial flexibility as it expands its footprint across the United States.
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