Moody's affirms Radiation Therapy

Moody's Investors Service said it affirmed the ratings of Radiation Therapy Services, Inc. following the announcement that the company has entered into a definitive agreement to be acquired by Vestar Capital for $32.50 per share.

The basis for the affirmation is Moody's expectation that the existing bank debt will be repaid at the close of the transaction, at which time Moody's said it will withdraw the ratings.

The company's act to enter into a definitive agreement to effect the change of control is an event of default under the terms of the current credit agreement, the agency added, noting that the company is expected to have this provision waived through the close of the transaction.

The agency said that affirmed ratings include the company's senior secured revolving credit facility due 2010, B1 (LGD3, 30%), senior secured term loan due 2012 (inclusive of $50 million add-on), B1 (LGD3, 30%), corporate family rating, B1, probability of default rating, B2 and speculative-grade liquidity rating, SGL-2.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.