21st Century Oncology gets default notice from trustee for 11% notes

By Angela McDaniels

Tacoma, Wash., May 17 – 21st Century Oncology Holdings, Inc. said it received a default notice on Tuesday from Wilmington Trust, NA, the trustee of the 11% senior notes due 2023 issued by subsidiary 21st Century Oncology, Inc.

The notice states that the subsidiary is in default, because it did not supply the financial information required in a 10-K annual report for the year ended Dec. 31 to the trustee and the noteholders on time.

The completion of the company’s 10-K annual report for 2015 has been delayed as a result of the restatement of prior-year financial results, according to an 8-K filing with the Securities and Exchange Commission.

The company noted that the receipt of the notice of default alone does not result in an acceleration of any of its debt.

If the company does not cure the default within 60 days, the noncompliance will be deemed an event of default and a cross-default will occur under the subsidiary’s credit agreement.

Following an event of default under the note indenture or the credit agreement, the noteholders or the credit facility lenders could accelerate the subsidiary’s debt outstanding under the indenture or the credit agreement.

As of March 31, the subsidiary had $360 million outstanding under the indenture and $120 million and $605.4 million outstanding under the revolving portion and term loan portion of the credit agreement, respectively.

As of that same date, the company had about $72.4 million of cash and cash equivalents.

21st Century Oncology is a Fort Myers, Fla.-based provider of integrated cancer care 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.