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 & Poors said the company owes $437 million under the credit facility, which S&P described as a term loan. 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-to-1 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.
Late News: US Oncology offers $465 million in senior secured notes
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