21st Century Oncology wins interim access to $25 million of DIP loan

By Caroline Salls

Pittsburgh, May 26 – 21st Century Oncology Holdings, Inc. obtained court approval to access $25 million of a proposed $75 million of debtor-in-possession financing on an interim basis, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for June 19.

The company said the DIP facility, together with its available cash reserves and cash provided by operations, is expected to provide sufficient liquidity for it to continue operating its business without interruption and to meet its obligations.

Morgan Stanley Senior Funding, Inc. is the administrative and collateral agent.

The DIP facility will mature 180 days after the closing date, subject to a 90-day extension at the borrower’s option.

Before termination of the company’s restructuring support agreement, interest on the financing will accrue at either the Base rate plus 650 basis points or Libor plus 750 bps. After termination of the support agreement, interest would accrue at either the Base rate plus 725 bps or Libor plus 825 bps with a 1% Libor floor or a 2% floor on Base rate loans.

21st Century Oncology, a Fort Myers, Fla.-based provider of integrated cancer care services, filed bankruptcy on May 25. The Chapter 11 case number is 17-22770.

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