Alliance HealthCare amends loan with modification to leverage covenant

By Sara Rosenberg

New York, Nov. 7 - Alliance HealthCare Services Inc. amended its credit facility, revising the maximum leverage ratio and providing that a $74.5 million term loan paydown satisfies all future mandatory amortization payments, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The leverage covenant is now set at 5.00 to 1.00 through Sept. 30, 2014; 4.75 to 1.00 from Oct. 1, 2014 through Sept. 30, 2015; 4.50 to 1.00 from Oct. 1, 2015 through Dec. 31, 2015; and 4.25 to 1.00 thereafter.

Funds for the term loan paydown came from cash on hand and proceeds from an asset sale.

The amendment was effective on Nov. 6.

Deutsche Bank Trust Co. Americas is the administrative agent on the deal.

Alliance HealthCare is a Newport Beach, Calif.-based provider of advanced outpatient diagnostic imaging and radiation therapy service.

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