Alliance HealthCare launches $70 million tack-on first-lien term loan

By Sara Rosenberg

New York, Oct. 4 - Alliance HealthCare Services Inc. held a call at 1 p.m. ET on Friday to launch a $70 million first-lien tack-on term loan due June 3, 2019 that is talked at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99, according to market sources.

The tack-on loan has 101 soft call protection through June 2014, sources said.

The spread, floor, call protection and maturity on the tack-on loan match the existing first-lien term loan.

Included in the tack-on loan is a ticking fee of 162.5 bps from Nov. 1 through closing, sources continued.

Commitments are due on Thursday.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to help fund the redemption of all of the company's 8% senior notes due 2016 in December.

Other funds for the redemption will come from revolver borrowings and cash on hand.

In connection with the new loan, the company is seeking an amendment to its existing credit facility that would waive the 3.25 times first-lien leverage test on the existing incremental and allow for the tack-on loan.

Lenders are being offered a 10 bps amendment fee, sources added.

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

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