Radiation Therapy amends loan to up revolver and term A size, reduce rates

By Sara Rosenberg

New York, Oct. 12 - Radiation Therapy Services Inc. amended its senior secured credit facility, increasing its revolver to $80 million from $70 million, increasing the term loan A, and reducing spreads on both tranches by 25 basis points.

Proceeds from the additional term loan A debt and borrowings under the revolver were used to repay the $22.8 million remaining outstanding balance under the term loan B that carried an interest rate of Libor plus 375 basis points, according to a company news release.

By paying off the term loan B, the company has reduced its interest rate spread by 175 basis points.

With the revolver expansion, two new banks were added to the syndicate - Regions Bank and National City Bank - joining existing lenders Bank of America, Wachovia Bank, Fifth Third Bank and SunTrust Bank.

"We believe this amendment strengthens our financial flexibility, improves our access to capital and further positions us for continued growth through acquisitions. The 25 basis point decrease in the interest rate spread and the retirement of the term B loan reduce our interest expense starting in the fourth quarter," said David M. Koeninger, executive vice president and chief financial officer, in the release.

Radiation Therapy is a Fort Myers, Fla., operator of radiation treatment centers.

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