21st Century Oncology cuts eight-year senior notes to $360 million, ups talk to 11% coupon at par

By Paul A. Harris

Portland, Ore., April 28 – 21st Century Oncology, Inc. downsized its offering of eight-year senior notes (Caa2) to $360 million from $400 million, a syndicate source said on Tuesday.

The $40 million of proceeds trimmed from the senior notes was shifted to a concurrent seven-year first-lien term loan B, upsizing it to $610 million from $570 million.

Price talk increased, as well. New talk has the notes pricing with an 11% coupon at par. Previous talk was in the 10½% area.

The deal has also undergone covenant changes.

Books close at 11 a.m. ET on Tuesday, and the deal is set to price thereafter.

Previous talk surfaced last Friday, at which time books had been scheduled to close late Monday afternoon.

Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., KeyBanc Capital Markets and HSBC Bank are the joint bookrunners.

The notes come with three years of call protection.

The Fort Meyers, Fla.-based provider of cancer treatment services plans to use the proceeds, together with cash on hand and new credit facilities, to repay its existing term loan, to redeem or repurchase its existing notes and for general corporate purposes.

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