Item 1.01
Entry into a Material Definitive Agreement.
Forbearance Agreement Amendments
As previously disclosed, on December 6, 2016, 21st Century Oncology Holdings, Inc. (we, our, us or the Company), 21st Century Oncology, Inc. (21C), a subsidiary of the Company, and certain of the Companys other subsidiaries entered into a Forbearance Agreement relating to the Companys indenture and a Forbearance Agreement relating to the Companys credit agreement (collectively, the Forbearance Agreements), with certain of 21Cs noteholders and lenders, respectively. The Forbearance Agreements were subsequently amended on December 15, 2016, on January 15, 2017 and on January 31, 2017.
We entered into amendments to the Forbearance Agreements, dated March 7, 2017 (collectively, the Amendments) to, among other things, provide that the noteholders and lenders party thereto will forbear, subject to important exceptions, until the earlier of April 15, 2017 and the occurrence of certain events (as described in the Forbearance Agreements) from exercising any rights and remedies under 21Cs indenture, notes or credit agreement, as applicable, on account of certain events of default.
Amended and Restated MDL Credit and Guarantee Agreement
As previously disclosed, on December 6, 2016, Medical Developers, LLC (the Borrower), a Florida limited liability company and indirect wholly owned subsidiary of the Company, and certain of the Borrowers subsidiaries and affiliates, including the Company (collectively, the Guarantors), the various financial institutions from time to time party thereto as lenders (the Tranche A Lenders) and Wilmington Savings Fund Society, FSB, as administrative agent and collateral agent (in such capacities, the Agent) entered into a credit and guaranty agreement (the MDL Credit Agreement) pursuant to which the Tranche A Lenders extended term loans to the Borrower in an aggregate principal amount of $20.0 million. The Borrower and the Guarantors entered into an amended and restated credit and guaranty agreement (the A&R MDL Credit Agreement), dated as of March 6, 2017, with the Tranche A Lenders, various other financial institutions from time to time party thereto as Tranche B Lenders (as defined therein) and Wilmington Savings Fund Society, FSB, as administrative agent and collateral agent to, among other things, amend and restate the MDL Credit Agreement to enable the Tranche B Lenders to provide additional term loans to Borrower in an aggregate principal amount of $15.0 million (such additional loans, the Tranche B Term Loans) in accordance with the terms and conditions set forth therein. As at the date hereof, term loans in an aggregate principal amount of $35.0 million have been provided to the Borrower pursuant to, and remain outstanding under, the A&R MDL Credit Agreement. Borrowings under the A&R MDL Credit Agreement are secured by a perfected security interest in substantially all of the Companys and each Guarantors tangible and intangible assets (subject to certain exceptions) and such security interest now ranks senior to existing liens securing borrowings under the Credit Agreement (as defined below). The A&R MDL Credit Agreement matures on April 15, 2017.
Credit Agreement Amendment
On March 6, 2017, the Company entered into an amendment (Amendment No. 3) to the Credit Agreement, dated as of April 30, 2015, among the Company, 21C, the lenders party thereto from time to time, Morgan Stanley Senior Funding, Inc., as administrative agent, and the other agents and arrangers named therein (as amended, supplemented or otherwise modified from time to time, the Credit Agreement). Amendment No. 3 amends certain provisions in the Credit Agreement to permit the incurrence of additional indebtedness pursuant to the A&R MDL Credit Agreement.
Supplemental Indenture
On February 28, 2017, 21C received the requisite consents from the holders of a majority of the aggregate principal amount of the Notes outstanding to enter into a fourth supplemental indenture, dated March 7, 2017 (the Supplemental Indenture) to the Indenture, dated April 30, 2015 (the Indenture), among 21C, the guarantors named therein and Wilmington Trust, National Association, as trustee (the Trustee), governing 21Cs 11.00% Senior Notes due 2023 (the Notes). The Supplemental Indenture amends certain provisions in the Indenture to permit the incurrence of additional indebtedness pursuant to the A&R MDL Credit Agreement.
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