Radiation Therapy Services to issue $50M of 9-7/8% Senior Subordinated Notes due 2017

Radiation Therapy Services Holdings, Inc. ("Radiation Therapy Services") announced today that its wholly owned subsidiary, Radiation Therapy Services, Inc., has agreed to issue an aggregate principal amount of $50 million of 9-7/8% Senior Subordinated Notes due 2017 ("New Notes").  Radiation Therapy Services has received a Commitment Letter from DDJ Capital Management, LLC, on behalf of certain managed funds and accounts, for the purchase of the Senior Subordinated Notes.

The net proceeds from the issuance of the New Notes will be used for Radiation Therapy Service's pending acquisition of all of the outstanding capital stock of Medical Developers, LLC ("MDLLC") and substantially all of the outstanding stock of MDLLC's affiliated companies ("MDLLC Acquisition"), as well as to fund transaction costs associated with the MDLLC Acquisition, and for general corporate purposes.  The New Notes will be issued concurrently with the consummation of the MDLLC Acquisition and the satisfaction of certain other customary conditions.  

The terms of the New Notes will be identical to Radiation Therapy Service's existing 9-7/8% Senior Subordinated Notes due 2017 ("Existing Notes), which were issued in the aggregate principal amount of $310 million in April 2010.  The purchaser of the New Notes will be granted registration rights and the New Notes are expected to be exchangeable into the same CUSIP as that of the Existing Notes.  

Radiation Therapy Services completed its previously announced exchange offer associated with the Existing Notes on January 12, 2011.

The New Notes have not been, and upon issuance will not be, registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.