Surgery Partners Term Loan Refinancing – Covenants Analysis

Analyzing the Surgery Partners term loan refinancing plan, our Americas Covenants team discusses the MFN protections under the company’s credit agreements as they seek to raise $125M in incremental term loans after facing economic difficulties during the Covid-19 pandemic. The incremental term loans which were incurred in 2020, as well as their repayments, both call attention to the risks associated with most favored nations (MFN) protections in credit agreements across the board.

In a recent article, our team discussed the increased abilities for lenders to begin to break down the strength of MFN protections in terms of their length, scope and pricing. For Surgery Partners these trends continue to prevail. Click through to read our full covenants analysis on the Surgery Partners term loan refinancing situation and how MFN mechanics in credit agreements may have allowed borrowers to exploit these protections at the height of the Covid-19 pandemic: https://reorg.com/surgery-partners-term-loan-refinancing/