Merrill Lynch is leading a $125 million senior secured credit facility for OnCURE Medical Group. The deal comprises a six-year, $70 million term loan and a five-year, $20 million revolver. The deal also includes a $35 million subordinated credit facility with MCG Capital and Ares Capital. Pricing on the term loan is LIBOR plus 4% and pricing on the revolver is LIBOR plus 3 1/2%, according to an investor. The deal launched Feb. 17 and is being used by OnCURE to refinance the company's existing debt.
The deal is also being used to acquire the outstanding stock of Costal Radiation Oncology Medical Group, which OnCure agreed to acquire on Sept. 15, according to an OnCure spokesman. The addition of Costal allows OnCure to expand into the Fountain Valley and Anaheim regions of California. The transaction will also provide OnCure with capital for additional acquisitions. The company previously amended its credit facility with Merrill Lynch at the time of the Costal agreement. The previous amendment raised the value of the credit facility from $15 million to just over $22 million.
Based in Newport Beach, Calif., OnCure is one of the leading providers of outpatient radiation treatment in the U.S. Founded in 1998, OnCure owns or manages more than 20 facilities throughout California and Florida. Calls to bankers at Merrill Lynch were not returned. Calls to MCG Capital and Ares Capital were also not returned. A spokesman at Costal declined comment.