21st Century Oncology gets $325 million investment, swaps restructuring

By Tali Rackner

Norfolk, Va., Sept. 26 – 21st Century Oncology Holdings, Inc. and Vestar Capital Partners announced that Canada Pension Plan Investment Board has made a $325 million equity investment in 21st Century, according to a notice. The new financing will be used to repay debt and enables the company to terminate the restructuring agreement entered into in July that would have converted the notes into equity.

Specifically, proceeds will be used to repay all outstanding borrowings under the company's revolving credit facility of about $79.5 million, repay all obligations under the South Florida Radiation Oncology credit facilities of about $84.5 million, repay certain other debt and capital leases, fund strategic initiatives and provide working capital for general corporate purposes.

As a result of the investment, the recapitalization support agreement has terminated. The senior subordinated notes will remain outstanding and unmodified.

Following the repayments of debt identified for repayment, 21st Century expects to have roughly $80 million of the net cash proceeds on hand.

The investment provides the company with substantial incremental liquidity, enables significant debt reduction and secures the long-term capital necessary to support its future growth strategy, the release said.

The Fort Meyers, Fla., company offers cancer treatment services.

© 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.