U.S. Renal Care, Plano, Texas, said it has signed a definitive agreement for a new credit facility to finance its purchase of Dialysis Corporation of America, Linthicum, Md. USRC announced a tender offer last month to pay $11.25 per share, or nearly $112 million for DCA. The tender offer is scheduled to expire June 1.
The credit facility consists of a $132.5 million, six-year term loan and a $40 million, five-year revolving loan, both supplied by Royal Bank of Canada, according to a securities filing by DCA. USRC will be required to dedicate half of its free cash flow (net of other, voluntary, prepayments) and nearly all of the proceeds of asset sales and all of the proceeds of new debt issues toward early payment of the term loan, according to the filing. DCA shareholders must have tendered at least 50.1% of outstanding shares for the credit facility to go into effect, according to the filing.
The deal would give USRC 84 outpatient dialysis centers in nine states, 24 dialysis programs at acute-care and specialty hospitals and more than a dozen home dialysis programs.
