Radiation oncology firm 21st Century Oncology said it has entered into two agreements with a group of noteholders, providing incremental liquidity and a framework for reducing outstanding debt and increasing cash flow.
The firm has been collaborating with a number of its noteholders and lenders on options to recapitalize its balance sheet to provide the financial flexibility needed to continue to grow its business. 21st Century Oncology's South Florida Radiation Oncology subsidiary has amended its credit agreement to refinance existing capital lease obligations and repay an outstanding intercompany loan.
In addition, the company's principal stockholder, Vestar Capital Partners, and the noteholder group have agreed to enter into a recapitalization support agreement that outlines the potential terms of a deleveraging transaction that is expected to occur in October or November. To provide adequate interim liquidity, certain members of the noteholder group have lent 21st Century subsidiaries $17.5 million under a new credit facility, according to the firm.
In other company news, 21st Century Oncology said it expects to report total revenues ranging from $260 million to $270 million for its fiscal quarter ended June 30. Pro forma adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to range from $41 million to $44 million.
