US Oncology tenders for 9 5/8% notes

New York, May 21 - US Oncology Inc. said it has begun a cash tender offer to purchase any and all of the $175 million outstanding principal amount of its 9 5/8% senior subordinated notes due 2012.

US Oncology is also soliciting consents to amend the note indenture to eliminate most of the principal restrictive covenants and amend other provisions.

Holders who tender by the consent deadline of 5 p.m. ET on June 4 will receive $1,189.10 per $1,000 principal amount, which includes a $20 consent payment. After the consent deadline but before the expiration date of 5 p.m. ET on June 25, the payment is $1,169.10 per $1,000 principal amount.

In both cases US Oncology will pay accrued interest.

Holders cannot tender without delivering consents and vice versa.

The offer is subject to holders of at least a majority of the principal amount of the notes delivering consents.

The offer is also subject to completion of US Oncology's acquisition by an affiliate of Welsh, Carson, Anderson & Stowe IX LP. The merger is not expected to close until July.

Citigroup Global Markets Inc. is dealer manager and solicitation agent for the tender offer and consent solicitation (800 558-3745 or call collect 212 723-6106). Georgeson Shareholder Communications Inc. is the information agent (800 733-6231 or call collect 212 440-9800).

US Oncology is a Houston-based cancer-care services company.

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