Simpson Thacher is representing JPMorgan in its role as financial advisor and lender to Universal Health Services, Inc., one of the nation’s largest hospital companies operating, through its subsidiaries, acute care hospitals, behavioral healthcare facilities and ambulatory centers located throughout the United States and Puerto Rico (“UHS”), in connection with UHS’s acquisition of Psychiatric Solutions, Inc., the largest standalone operator of owned or leased freestanding psychiatric inpatient facilities with 94 facilities in 32 states, Puerto Rico, and the U.S. Virgin Islands (“PSI”). Under the terms of the merger agreement, UHS will acquire PSI for a price of $33.75 per share in cash, or approximately $2.0 billion. Including the assumption of approximately $1.1 billion in PSI net debt, the total transaction consideration is approximately $3.1 billion.
Simpson Thacher is also representing JPMorgan and Deutsche Bank as lead arrangers and lenders in connection with $4.15 billion of senior secured credit facilities to finance the acquisition and refinance existing debt of UHS and PSI, comprised of (i) a $500 million “tranche A” term loan facility, (ii) a $2,850 million “tranche B” term loan facility and (iii) a $800 million revolving credit facility.
The Simpson Thacher team includes: Caroline Gottschalk and Tom Lamprecht (M&A), Jim Buresh (Credit), John Ericson and Jordan Taylor (Capital Markets), Amie Broder (Tax), Jennifer Pepin (Executive Compensation and Employee Benefits), Mardi Merjian and Heesun Kang (Real Estate), Tim Mulvihill (Environmental), Amiad Kushner (Litigation) and Daeyna Grant (Intellectual Property).