Oncology firm lands $325 million

FORT MYERS — Canada's largest pension-fund manager invested $325 million in 21st Century Oncology, giving the radiation-treatment firm long-term capital needed for future growth.

In addition, the capital infusion in a preferred equity investment by Canada Pension Plan Investment Board will allow 21st Century Oncology to lower its significant debt load and improve its liquidity.

The net proceeds of the investment will be used to repay all outstanding debt under the company's revolving credit facility of approximately $79.5 million, repay all obligations under the South Florida Radiation Oncology credit facilities of approximately $84.5 million, repay certain other debt and capital leases, fund strategic initiatives and provide working capital for general corporate purposes. Following the repayments of debt identified for repayment, 21st Century Oncology expects to have approximately $80 million of the net cash proceeds on hand, the company says in a statement.

“It will significantly enhance our capital structure and give us the resources necessary to continue providing integrated cancer care, improve the quality of care, and deliver that care at compelling value to our expanding patient population throughout North America and Latin America,” says Daniel Dosoretz, founder and CEO of 21st Century Oncology.

The Fort Myers-based privately held company operates 179 treatment centers, including 144 centers located in 16 U.S. states. The company also operates 35 centers located in six countries in Latin America.