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The Deal: Envision Healthcare Goes Public

NEW YORK (TheStreet) --Clayton Dubilier & Rice-backed Envision Healthcare Holdings (EVHC) priced its upsized initial public offering at $23 per share, at the top of the expected $20 to $23 range, raising $966 million on Tuesday.

The Greenwood Village Colo.-based provider of outsourced medical and ambulance services sold 42 million shares; it had originally planned to offer 35 million shares. Private equity backer CD&R did not sell any shares in the IPO. At the IPO price, its stake of 128.9 million shares is valued at $2.96 billion.

That, added to the $428 million dividend Envision paid CD&R in October, brings the private equity firm's realized and unrealized gain to about 3.8 times the $887.1 million in equity it paid for the company in 2011, based on financial information in the company's filings.

CD&R acquired the company, then known as Emergency Medical Services Corp., in February 2011 in a deal valued at $3.2 billion. The acquisition was done via its Clayton, Dubilier & Rice Fund VIII, which closed in 2009 with $5 billion.

Envision's shares opened at $25.25 on its first day of trading; they traded up to a high of $25.69 by the afternoon.

The company said it will use proceeds of the IPO to redeem the outstanding $450 million principal amount of its PIK notes at about 102.75% of the principal amount plus accrued and unpaid interest, which it estimated to be around $17.2 million.

Envision posted adjusted EBITDA of $105.9 million on revenue of $899.3 million in the second quarter of 2013, up from adjusted EBITDA of $96.3 million on revenue of $801.1 million in the same quarter of the previous year.

Envision Healthcare listed on the New York Stock Exchange under the ticker symbol "EVHC." Goldman Sachs &, Barclays, Bank of America Merrill Lynch and Citigroup acted as the lead bookrunners on the deal.

--Written by Taina Rosa in New York

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