Accuray said early Thursday it has closed a new $52 million senior secured revolving loan facility with MidCap Financial Trust. Net proceeds, in addition to cash on hand, were used to retire all the debt held by Cerberus Business Finance, LLC, it said in a statement. The new facility bears interest at 90-day LIBOR – subject to a 1.00% floor – plus 450 basis points with a final maturity date of June 2021. The spread is up to 300 basis points narrower than the debt being retired and, as a result, Accuray expects interest costs to be reduced by about $2 million annually, beginning fiscal 2018.
The company also said it can draw upon a further $33 million from an additional revolving facility. “Our objective remains to evaluate all financing sources that would allow us to either refinance our existing convertible debt or provide the cash necessary to settle the debt with cash at maturity and our new loan facility with MidCap Financial Trust gives us the flexibility to achieve that objective,” CFO Kevin Waters said.