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Including $50 Million Accordion Feature, a Total $150 Million Debt Financing
FORT MYERS, Fla., Dec. 16 /PRNewswire-FirstCall/ -- Radiation Therapy
Services, Inc. (Nasdaq: RTSX), a leading operator of radiation therapy
centers, announced today it closed its previously announced $100 million debt
financing. The Company has added a $50 million accordion feature to the
facility, which allows it to increase the aggregate principal amount of the
Term B financing to $150 million, at the Companys option.
The $100 million Term B loan has an initial interest rate spread of 200
basis points, with the opportunity to permanently reduce the spread to 175
basis points after six months, provided the Companys leverage ratio is below
2:1.
The Company used the proceeds of the Term B loan to pay off its
pre-existing Term A loan as well as the borrowings drawn on its $140 million
revolving credit facility. The current availability under the revolving credit
facility is $140 million.
The Term B loan is a seven-year borrowing with a maturity of December 31,
2012. The maturity for the revolving credit facility remains March 15, 2010.
Participants in the Term B financing include institutional investors as well
as the Companys senior bank lending group.
David M. Koeninger, Executive Vice President and Chief Financial Officer,
stated, "We are extremely pleased with the high level of interest received
among institutional investors, particularly institutions new to Radiation
Therapy. This additional capital source will support program expansions within
our existing local markets, entry into new local markets and ensure that we
have the most advanced treatment technology. We look forward to a healthy,
long-term relationship with our new investors."
The Company will be reporting the closing of this credit facility on a
Form 8-K filed with the SEC on or before December 22, 2005.
About Radiation Therapy Services
Radiation Therapy Services, Inc., which operates radiation treatment
centers primarily under the name 21st Century Oncology, is a provider of
radiation therapy services to cancer patients. The Companys 68 treatment
centers are clustered into 22 local markets in 14 states, including Alabama,
Arizona, California, Delaware, Florida, Kentucky, Maryland, Massachusetts,
Nevada, New Jersey, New York, North Carolina, Rhode Island and West Virginia.
The Company is headquartered in Fort Myers, Florida. More information about
the Company can be found at its Web site http://www.rtsx.com. RTSXG
This release may contain forward-looking statements about the Companys
future plans, expectations and objectives. Words such as "may," "will,"
"expect," "intend," "anticipate," "plan," "believe," "seek," "could" and
"estimate" and variations of these words and similar expressions are intended
to identify forward-looking statements. These forward-looking statements are
not historical facts and are subject to risks and uncertainties that could
cause the actual results to differ materially from those projected in these
forward-looking statements including, but not limited to the Companys ability
to successfully close on the financing commitment, those risk factors
described in the "Risk Factors" section and other information in the Companys
most recently filed quarterly report on Form 10-Q and annual report on Form
10-K, as well as the Companys other filings with the Securities and Exchange
Commission which are available on the SECs website at http://www.sec.gov.
Readers of this release are cautioned not to place undue reliance on forward-
looking statements. The Company undertakes no obligation to publicly update
or revise the forward-looking statements contained herein to reflect changed
events or circumstances after the date of this release.
Contacts:
Dave Koeninger
Chief Financial Officer
Radiation Therapy Services, Inc.
239-931-7282
dkoeninger@rtsx.com
Investors/Media:
Nick Laudico/Jason Rando
The Ruth Group
646-536-7030/7025
nlaudico@theruthgroup.com
jrando@theruthgroup.com
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