Moody’s might lift 21st Century

Moody's Investors Service said it placed 21st Century Oncology, Inc.'s ratings under review for upgrade, including the Caa2 corporate family rating, Caa2-PD probability of default rating, B1 ratings on the company's $100 million revolving credit facility and $90 million term loan, Caa2 rating on the company's existing $350 million 8 7/8% second-lien notes, and Caa3 rating on the $380 million 9 7/8% subordinated notes.

The speculative grade liquidity rating was changed to SGL-3 from SGL-4.

Moody’s said the action follows the company's Sept. 26 announcement that the Canada Pension Plan Investment Board has made a $325 million preferred equity investment in 21st Century. Proceeds are expected to enable 21st Century to reduce debt and provide the company with incremental liquidity for operations and growth initiatives. The investment also negates the Restructuring Support Agreement that 21st Century had entered with a group of bondholders in July 2014.

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