U.S. Renal downsizes mezzanine debt to $40 million; term loan upsized

By Lisa Kerner

Charlotte, N.C., May 17 - U.S. Renal Care Inc.'s mezzanine financing was downsized to $40 million from $47.5 million as the result of a term loan upsizing related to the company's acquisition of Dialysis Corp. of America, Inc.

Pricing on the mezzanine debt was left unchanged at 11¼% cash plus 2% PIK, a market source said.

The company increased the size of its credit facility (B1/B+) to $172.5 million from $155 million and finalized pricing at Libor plus 450 basis points.

Proceeds from the credit facility, along with mezzanine debt, will be used to help fund the $112 million acquisition of Dialysis Corp.

U.S. Renal Care is tendering for all of the outstanding common shares of Dialysis Corp. for $11.25 per share in cash. The tender will be followed by a merger to acquire all remaining outstanding shares at the same cash price paid in the tender offer.

U.S. Renal Care is a Plano, Texas-based provider of outpatient dialysis services. Dialysis Corp. of America is a Linthicum, Md.-based provider of outpatient kidney dialysis centers.

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