21st Century Oncology launches term loan B at Libor plus 525-550 bps

By Sara Rosenberg

New York, April 14 – 21st Century Oncology Inc. launched on Tuesday its $570 million seven-year first-lien term loan B with price talk of Libor plus 525 basis points to 550 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has a 50 bps pricing step down at 4.5 times total net leverage and 101 soft call protection for six months, the source said.

Covenants include total net leverage of 7.5 times with one step down.

The company’s $695 million senior credit facility (B1) also includes a $125 million revolver.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets LLC and HSBC Bank are the leads on the deal.

Commitments are due at noon ET on April 27, the source added.

Proceeds will be used to refinance existing debt.

21st Century Oncology is a Fort Meyers, Fla.-based provider of cancer treatment services.

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