Alliance HealthCare gets $460 million term, $120 million revolver

By Jennifer Chiou

New York, Nov. 20 - Alliance HealthCare Services Inc. said it obtained commitments for a new $460 million term loan maturing in June 2016 and a $120 million revolving facility due December 2014 as part of its senior secured credit agreement.

Alliance said that the term loan is expected to bear interest at Libor plus 350 basis points while talk on the revolver is at Libor plus 325 bps to 375 bps, both with a 2% Libor floor.

As already reported, Deutsche Bank, Barclays and Morgan Stanley are the lead banks on the deal that was launched with a bank meeting on Nov. 16, with Deutsche the left lead. Closing is slated for Dec. 1.

According to a market source, the company previously talked a $450 million 61/2-year term loan at Libor plus 350 bps with a 2% Libor floor and an original issue discount of 98.

Proceeds will be used to help fund the purchase of the company's $300 million of 7¼% senior subordinated notes due 2012 and to refinance its existing credit facility.

Other funds for the refinancing will come from a $200 million senior notes offering and cash on hand.

Alliance HealthCare is a Newport Beach, Calif.-based provider of outpatient diagnostic imaging and radiation oncology services.

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