Covenant Physician Partners has been sold to United Surgical Partners International (USPI), a division of Tenet Healthcare Corporation [NYSE:THC], according to two sources familiar with the matter.

Mergermarket sister publication Debtwire reported last week that the Nashville, Tennessee-based ambulatory surgical facilities operator had been sold to a strategic after private equity owner KKR & Co. paid off lenders at par, avoiding a potential distressed debt exchange.

The company’s revenue has been under pressure due to increased labor costs and high interest rates, as reported.

Founded in 2008 and acquired by KKR in 2017, Covenant Physician Partners is an acquirer and operator of ambulatory surgery centers and other physician services focusing on gastroenterology, ophthalmology and optometry. The company has more than 80 locations across 17 states, according to its website.  KKR bought the company in 2017 and financed the deal with USD 195m of new term loan debt alongside a USD 25m revolver with a first priority claim on assets. The company later tapped the loan market to refinance the buyout loans in 2019, as reported.

KKR declined to comment. Covenant Physician Partners, USPI and Tenet did not respond to requests for comment.