Item 8.01
Other Events.
Delivery of Default Notice
On May 17, 2016, 21st Century Oncology Holdings, Inc. (the Company) received notice from Wilmington Trust, National Association, as trustee (the Trustee) of the 11.00% Senior Notes due 2023 (the Notes) of 21st Century Oncology, Inc (21C), a subsidiary of the Company. The notice states that 21C is in default under the Indenture governing the Notes (the Indenture) because 21C failed to timely furnish to the Trustee and noteholders the financial information required in an annual report on Form 10-K for the year ended December 31, 2015. The completion of the Companys 2015 annual report on Form 10-K has been delayed as a result of the restatement of prior year financial results. Receipt of the notice of default alone does not result in an acceleration of any of the Companys indebtedness.
If the Company does not cure the default specified within the notice within 60 days, the noncompliance will be deemed an Event of Default under the Indenture. Should an Event of Default occur under the Indenture, a cross-default would occur under 21Cs credit agreement (the Credit Agreement).
Following an Event of Default under the Indenture or Credit Agreement, the holders of the Notes or lenders under the Credit Agreement, as applicable, could accelerate 21Cs indebtedness outstanding under the Indenture or Credit Agreement, as applicable. As of March 31, 2016, 21C had $360 million outstanding under the Indenture and $120 million and $605.4 million outstanding under the revolving portion and term loan portion of the Credit Agreement, respectively. As of that same date, the Company had approximately $72.4 million of cash and cash equivalents.
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Statements that include the words believes, expects, anticipates, intends, plans, and similar expressions or future or conditional verbs such as will, should, would, may and could are generally forward-looking in nature and not historical facts. Forward-looking statements are based on managements current expectations or beliefs about the Companys future plans, expectations and objectives. These forward-looking statements are not historical facts and are subject to risks and uncertainties that could cause the actual results to differ materially from those projected in these forward-looking statements. Readers of this Current Report on Form 8-K are cautioned not to place undue reliance on forward-looking statements contained herein, which speak only as of the date of this Current Report on Form 8-K. Please refer to the risk factors contained in the Companys other filings with the SEC. The Company undertakes no obligation to publicly update or revise the forward-looking statements contained herein to reflect changed events or circumstances after the date of this Current Report on Form 8-K.
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