Alliance HealthCare to Offer $200 Million in Notes

Alliance HealthCare Services Inc. said Thursday it plans to offer $200 million in senior notes in a private offering and negotiate a new credit agreement with lenders so it can refinance debt.

The company said the new credit agreement will include a $450 million term loan that matures in 6 1/2 years, and a $120 million revolving facility with a 5-year maturity.

Alliance said it will use the proceeds of the offering and the credit agreement to make a tender offer for $300 million of 7.25 percent senior subordinated notes due in 2012. The company, which provides diagnostic imaging and cancer-treating radiation services, plans to use the remaining proceeds and cash to refinance its existing credit agreement.

Shares of Alliance fell 9 cents to close at $5.34.

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