Radiation Therapy amends credit terms via Wells Fargo, extends loans

By Susanna Moon

Chicago, Oct. 3 - Radiation Therapy Services Holdings, Inc. amended its credit agreement last Thursday with Wells Fargo Bank, NA as administrative agent, pushing out the maturity on the bulk of its revolving loans to Feb. 21, 2014, according to an 8-K filing with the Securities and Exchange Commission.

Under the new terms, interest on the senior secured term loan and extended revolving loans will be increased by 50 basis points to Libor plus 475 bps.

The other revolving loans will continue to mature on Feb. 21, 2013 with interest at Libor plus 425 bps, according to the filing.

The finance covenants were modified to a total leverage ratio of six times for the fiscal quarters ending Sept. 30 and Dec. 31. The consolidated interest coverage ratio will be two times for the fiscal quarters ending March 31, 2011 through June 30, 2012.

The filing noted that the amendment also modified the permitted investments baskets, the permitted debt baskets and several definitions in the credit agreement.

Radiation Therapy also entered into an incremental amendment with SunTrust Bank as incremental lender for up to $50 million for general corporate purposes.

"The $50 million increase to our revolver provides us with access to additional dry powder and the revised covenants give us greater flexibility to grow our business," Daniel Dosoretz, president and chief executive officer of Radiation Therapy, said in a press release.

"Furthermore, we are now in a much stronger position to actively pursue acquisition and joint venture opportunities in the United States and Latin America," Dosoretz said in the release. "These opportunities include free-standing centers, as well as hospital and physician joint ventures where we can deliver our advanced academic level clinical protocols in a community setting."

Radiation Therapy Services is a Fort Myers, Fla.-based provider of radiation therapy services to cancer patients.

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