US Oncology, the Woodlands, Texas, announced an offering of $465 million in senior secured notes with the proceeds slated to pay off its senior secured credit facility, which matures in quarterly installments starting in September 2010. Standard and Poors said the company owes $437 million under the credit facility, which S&P described as a term loan.
US Oncology offering $465 million in senior notes
S&P gave the new offering, which is a private placement available only to qualified financial institutions and foreign investors, a B rating. The speculative rating is based on the privately held companys high leveragethe ratio of debt-to-earnings before interest, taxes, depreciation and amortization was 7.6 as of March 31and reimbursement challenges, particularly a July 2007 ruling by the CMS that affected Medicare reimbursements for anemia brought on by cancer treatments, S&P said.
What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.