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Wells Fargo is Agent in Radiation Therapy Services’ Facility Amendment

August 30, 2013, 07:29 AM
Filed Under: Medical

Radiation Therapy Services Holdings, Inc., a leading operator of radiation therapy centers, announced today that its wholly owned subsidiary, Radiation Therapy Services, Inc., has amended its $140 million revolving credit facility. Wells Fargo served as Administrative Agent, Issuing Bank, Collateral Agent and Swingline Lender. Wells Fargo Securities, Suntrust Bank and Morgan Stanley are acting as Joint Lead Arrangers and Joint Bookrunners.

The amendments include, among other things, the following changes:

  • Reduction of the total revolving loan commitment to $100 million, which remains secured on a first priority basis by substantially all of the Company's, RTSI's and the subsidiary guarantors' assets;
  • Conversion of $40 million of outstanding revolving loans into new term loans under the Credit Facility;
  • Addition of $50 million of new term loans under the Credit Facility, increasing RTSI's new term loan to $90 million;
  • Removal of the First Lien Debt to EBITDA covenant of 1.25x, replacing it with a minimum Liquidity requirement of $15 million.

Both the revolver and term loan have a maturity date of October 15, 2016.

Use of proceeds from the term loan is intended to provide the necessary liquidity to complete the purchase of OnCure Holdings, Inc. which is anticipated to close in October 2013.   Following the close of this financing and the OnCure acquisition, the Company expects to have minimal outstanding under its $100 million revolver.

Bryan J. Carey, Vice Chairman and Chief Financial Officer, commented, "The additional capital raised through this transaction enables us to complete the OnCure transaction without diminishing our financial flexibility to continue to execute on our growth strategy.  We are pleased with the support of our lending group."

Radiation Therapy Services is a leading provider of advanced radiation therapy and other services to cancer patients in the United States and Latin America. The Company offers a comprehensive range of radiation treatment alternatives, focused on delivering academic quality, cost-effective patient care in a personal and convenient setting.

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