Shearman & Sterlin represented RBC Capital Markets as sole lead arranger and sole book manager and Royal Bank of Canada as administrative agent of a $15 million revolving credit facility for Prospect Medical Holdings, Inc. This deal was in connection with Prospect Medical's refinancing of all amounts outstanding under its prior senior credit facilities through the closing of its $160 million senior secured notes offering. These senior secured notes and the revolving credit facility shared a first lien security interest in all of the real property collateral and a substantial portion of the personal property collateral. The revolving credit facility had a first lien security interest on the remaining portion of the personal property collateral with those senior secured notes obtaining a second lien security interest. Prospect Medical used the net proceeds from the sale of the Notes, together with cash on hand, to repay all amounts outstanding under its prior credit facilities, transaction costs, and to terminate its interest rate swap agreements.

Shearman & Sterling’s Finance and Capital Markets groups worked together closely in structuring, drafting, negotiating the loan and note documentation and closing the transaction.

The following Shearman & Sterling attorneys represented RBC Capital Markets and Royal Bank Canada in the Prospect Medical Holdings transaction: partners Lisa Brill (New York-Property), Steven E. Sherman (San Francisco-Finance) and John Wilson (San Francisco-Capital Markets); counsel Jinho Joo (San Francisco-Capital Markets) and Jeffrey Salinger (New York-Property/Environmental); and associates Matthew Harvey (San Francisco-Capital Markets), Denise Karen Holdridge (New York-Property), Brad Kern (San Francisco-Capital Markets), Ryan Knutson (New York-Bankruptcy), Ji Liu (San Francisco-Capital Markets), Eileen O'Pray (San Francisco-Tax) and Nathan Wood (San Francisco-Finance).