PE-backed Adeptus Health debuts IPO

Adeptus Health, a portfolio company of Sterling Partners, has launched its IPO after pricing its 4.9 million shares at $22 per share. The stock began trading Wednesday on the NYSE under the ticker symbol “ADPT.” Deutsche Bank Securities, Goldman Sachs, Evercore Group and Morgan Stanley are the lead underwriters. Adeptus Health owns and operates First Choice Emergency Room, a network of independent freestanding emergency rooms.

PRESS RELEASE

Lewisville, TX, June 25, 2014 – Adeptus Health Inc. (“Adeptus” or the “Company”), owner and operator of First Choice Emergency Room, the largest network of independent freestanding emergency rooms in the United States, today announced the pricing of its initial public offering of 4,900,000 shares of its Class A common stock at a public offering price of $22.00 per share. The shares are expected to begin trading today on the New York Stock Exchange under the symbol “ADPT.”

All 4,900,000 shares are being offered by Adeptus. Proceeds from the offering are expected to be approximately $93.0 million, after deducting underwriting discounts and commissions and estimated offering expenses, and will be used to repay some or all of Adeptus’ outstanding indebtedness. Any remaining proceeds will be used for general corporate purposes, including working capital to support Adeptus’ facility expansion efforts. The offering is expected to close on June 30, 2014, subject to customary closing conditions.

Adeptus and the selling stockholder, an affiliate of Sterling Partners, have granted the underwriters an option until July 24, 2014 to purchase up to 735,000 additional shares of Class A common stock, of which 313,586 will be sold by the selling stockholder and 421,414 sold by Adeptus. If the underwriters exercise their option to purchase the additional shares, Adeptus will use the proceeds received by it to purchase an equivalent number of LLC interests in Adeptus Health LLC, a subsidiary of Adeptus, from another affiliate of Sterling Partners. The Company will not receive any of the proceeds from the sale of any additional shares by the selling stockholder.

Deutsche Bank Securities Inc., Goldman, Sachs & Co., Evercore Group L.L.C. and Morgan Stanley & Co. LLC are acting as joint book-running managers. Deutsche Bank Securities Inc. and Goldman, Sachs & Co. are acting as the representatives of the underwriters, and Piper Jaffray & Co., RBC Capital Markets LLC, and Dougherty & Company LLC are acting as co-managers of the offering.

The offering of these securities will be made only by means of a prospectus, copies of which may be obtained from Deutsche Bank Securities Inc., Attention: Prospectus Group, 60 Wall Street, New York, NY 10005, telephone: +1 (800) 503-4611, or by emailing: prospectus.CPDG@db.com or Goldman, Sachs & Co., Attention: Prospectus Department, 200 West Street, New York, NY 10282, telephone: +1 (866) 471-2526, facsimile: +1 (212) 902-9316, or by emailing: prospectus-ny@ny.email.gs.com.

The registration statement relating to these securities has been declared effective by the U.S. Securities and Exchange Commission (the “SEC”). This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Adeptus Health Inc.
Adeptus Health Inc. owns and operates First Choice Emergency Room, the largest network of independent freestanding emergency rooms in the United States.

About First Choice Emergency Room
First Choice Emergency Room is the nation’s leading network of independent freestanding emergency rooms; it is both the largest and the oldest. First Choice Emergency Room is transforming the delivery of emergency medical services for adult and pediatric emergencies by offering patients convenient, neighborhood access to emergency medical care. First Choice Emergency Room facilities are innovative, freestanding, and fully equipped emergency rooms with a complete radiology suite of diagnostic technology (CT scanners, ultrasound, and digital x-rays) and on-site laboratories. All First Choice Emergency Room locations are staffed with Board-certified physicians and emergency trained registered nurses. First Choice Emergency Room has three locations in the Austin area, 15 in the Dallas/Fort Worth area, 14 in the Houston area, one in the San Antonio area, two in Colorado Springs and two in Denver.

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