US Oncology redeems 9 1/8% notes, 10¾% notes for $1.2 billion

By Angela McDaniels

Tacoma, Wash., Feb. 17 - US Oncology, Inc. redeemed all of its 9 1/8% senior secured notes due 2017 on Feb. 16 and all of its 10¾% senior subordinated notes due 2014 on Feb. 17, according to an 8-K filing with the Securities and Exchange Commission.

The make-whole redemption price for the 9 1/8% notes was calculated at 50 basis points over Treasuries. The total redemption price was roughly $912.5 million, which included principal, accrued interest and a premium of about $137.3 million.

The 10¾% notes were redeemed at 103.583% of par. The total redemption price was about $285 million, which included principal, accrued interest and a premium of about $9.9 million.

The notes were redeemed in connection with the company's acquisition of McKesson Corp., a San Francisco-based health-care services and information technology company. The acquisition was completed Dec. 30.

The company also redeemed US Oncology Holdings, Inc.'s floating-rate senior toggle notes due 2012 on Jan. 31. The redemption price was about $540 million, which included principal and accrued interest.

When the redemptions were announced on Dec. 30, the company said McKesson would fund them with cash and, if necessary, borrowings under its one-year bridge loan.

US Oncology is a cancer treatment and research services company based in the Woodlands, Texas.

© 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.