Alliance Healthcare to launch $390 million credit facility on Thursday

By Sara Rosenberg

New York, May 8 - Alliance HealthCare Services Inc. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $390 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, SunTrust Robinson Humphrey Inc. and Deutsche Bank Securities Inc. are the lead banks on the deal.

The facility consists of a $50 million five-year revolver and a $340 million six-year first-lien term loan, the source said.

Price talk on the term loan is Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 991/2, the source said.

The term loan has 101 soft call protection for six months.

Covenants include a maximum total leverage ratio.

Proceeds will be used to refinance existing bank debt.

Commitments are due on May 23.

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

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