Radiation Therapy seeks $100 million term B, revolver repricing

By Sara Rosenberg

New York, Dec. 7 - Radiation Therapy Services Inc. is in the process of getting a new $100 million seven-year term loan B and amending its existing $140 million revolving credit facility to lower interest rates by 25 basis points, according to a company news release.

The new term loan B will carry an interest rate of Libor plus 175 bps.

Proceeds from the term loan B will be used to pay off the existing term loan A and all borrowings drawn on the revolver, resulting in a $62 million increase in availability under the combined facilities.

Participants in the term loan B include institutional investors as well as the company's existing senior bank group.

Bank of America, Wachovia Bank, Fifth Third Bank, SunTrust Bank, Regions Bank, National City Bank, Carolina First Bank and International Bank of Miami make up the existing lending group, and, with this transaction, LaSalle Bank was added to the syndicate.

The term loan B is expected to close on or before Dec. 20.

"As a result of our strong operating performance, we are pleased to enhance our financial flexibility under the credit facility by adding institutional investors to our lending group and reduce our interest rate spreads with this transaction," said David M. Koeninger, executive vice president and chief financial officer, in the release.

"This access to an additional capital source will support program expansions within our existing local markets, entry into new local markets and ensure that we have the most advanced treatment technology for our patients. The modified covenants will provide further flexibility. The interest rate reductions to our amended facility will take effect upon closing."

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

© 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.