Alliance Healthcare cuts term loan spread, adds delayed-draw tranche

By Sara Rosenberg

New York, May 28 - Alliance HealthCare Services Inc. reduced pricing on its $340 million six-year first-lien term loan to Libor plus 325 basis points from Libor plus 350 bps and added an $80 million delayed-draw term loan to its capital structure that is also priced at Libor plus 325 bps, according to a market source.

The funded term loan and delayed-draw term loan have a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

The company's now $470 million credit facility (Ba3/BB-), up from $390 million, also provides for a $50 million five-year revolver.

Recommitments are due at noon ET on Wednesday, the source added.

Covenants include a maximum total leverage ratio.

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

Proceeds will be used to refinance existing debt.

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

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