Item 1.01.
Entry Into a Material Definitive Agreement.
On June 10, 2016, 21
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Century Oncology Holdings, Inc. (the Company) entered into an amendment and waiver (Amendment No. 1) to the Credit Agreement, dated as of April 30, 2015, among the Company, the Companys subsidiary, 21
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Century Oncology, Inc. (21C), the lenders party thereto from time to time, Morgan Stanley Senior Funding, Inc., as administrative agent (in such capacity, the 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. 1 waives through July 31, 2016 any default or event of default under the Credit Agreement for failure to timely provide audited annual financial statements and related reports and certificates for the year ended December 31, 2015 and quarterly financial statements and related reports and certificates for the quarter ended March 31, 2016 (the Specified Deliverables).
Additionally, Amendment No. 1 waives any cross-default that may arise under the Credit Agreement prior to or on July 31, 2016 as a result of a default or event of default under 21Cs indenture, dated April 30, 2015, relating to 21Cs 11.00% Senior Notes due 2023, which occurs as a result of the Companys failure to timely deliver to the trustee under the indenture its annual report on Form 10-K for the year ended December 31, 2015 and its quarterly report on Form 10-Q for the quarter ended March 31, 2016.
Amendment No. 1 also amends the interest rates applicable to the loans under the Credit Agreement. Loans under the term loan credit facility, as amended, are subject to the following interest rates: (a) for loans which are Eurodollar loans, 6.00% per annum; and (b) for loans which are ABR loans, 5.00% per annum. Loans under the revolving credit facility, with respect to the Eurodollar loans or the ABR loans, as applicable, are determined on the basis of a pricing grid tied to 21Cs consolidated leverage ratio. Amendment No. 1 further provides that the interest rate applicable to the loans under the Credit Agreement increases in each case by 0.125% per annum as of July 1, 2016 in the event that 21C does not deliver the Specified Deliverables to the Administrative Agent by June 30, 2016.
The foregoing is a summary of Amendment No. 1 and is qualified in its entirety by reference to the full text of the amendment, a copy of which is filed herewith as Exhibit 10.1 and incorporated herein by reference.