Aurora Diagnostics to launch $340 million credit facility on Tuesday

By Sara Rosenberg

New York, April 30 - Aurora Diagnostics Inc. is scheduled to hold a bank meeting on Tuesday to launch its proposed $340 million credit facility, according to sources.

Barclays, Morgan Stanley and UBS are the lead banks on the deal.

The facility consists of a $110 million four-year revolver and a $230 million six-year term loan B.

Price talk on the term loan was outlined at Libor plus 425 basis points with a 2% Libor floor in an S-1 filed with the Securities and Exchange Commission on Friday.

Proceeds will be used to refinance existing bank debt, to redeem Aurora Holdings' class Z capital and for acquisitions, working capital and general corporate purposes.

Closing on the credit facility is expected to occur before the company completes its proposed initial public offering of class A common stock.

Of the total revolver amount, $50 million will be available at the close of the facility and $60 million will be available upon completion of the IPO.

Proceeds from the IPO will be used to acquire Aurora Holdings' units and to increase the company's capitalization and financial flexibility, fund its growth, and for working capital and general corporate purposes.

Aurora is a Palm Beach Gardens, Fla.-based diagnostics company.

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