21st Century Oncology ups term B to $610 million, finalizes spread

By Sara Rosenberg

New York, April 28 – 21st Century Oncology Inc. upsized its seven-year first-lien term loan B to $610 million from $570 million and firmed pricing at Libor plus 550 basis points, the wide end of the Libor plus 525 bps to 550 bps talk, according to a market source.

In addition, the 50 bps pricing step-down at 4.5 times total net leverage on the term loan B was removed, and the call protection was changed to a hard call of 102 in year one and 101 in year two, with a par public equity carve-out, from a 101 soft call for six months, the source said.

The term loan B still has a 1% Libor floor and an original issue discount of 99.

The company’s now $735 million senior credit facility, up from $695 million, also includes a $125 million revolver.

Commitments were due at 11 a.m. ET on Tuesday, the source continued.

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

Proceeds will be used to refinance existing debt.

Other funds for the refinancing will come from $360 million of senior notes that priced at par to yield 11%. The notes were downsized from $400 million with the term loan B upsizing.

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

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