Aurora Diagnostics announced it entered into a facility with Cerberus Business Finance. The agreement includes a $165 million term loan, $30 million revolver and $25 million delayed draw term loan facility. Evercore and Sidley Austin served as financial and legal advisors, respectively, to Aurora Diagnostics.

Approximately $145.6 million of the proceeds under the new credit facility were used to pre-pay all amounts outstanding under Aurora’s existing secured credit facility term loan and revolver.

The balance of the proceeds under the new credit facility, including the availability under the revolving line of credit, will be used for potential future acquisitions and for Aurora’s general working capital and operational needs.

“Aurora is well positioned by its size and national footprint to be a consolidator of anatomic pathology providers, and this new credit agreement with Cerberus positions us to do just that,” said Aurora CEO Daniel D. Crowley. “We have recently completed acquisitions of two groups and have an attractive pipeline of others who have expressed interest in becoming part of the Aurora family. It is nice to have a financial partner like Cerberus, who worked with us to construct the credit facility to support our acquisition strategy. Our prior revolver was scheduled to mature next May and the entire credit facility in May of 2016. This opportunistic transaction extends our financing horizon and provides greater cash access to execute our acquisition strategy. Furthermore, the financial covenants under the new credit facility are better aligned with our business strategy. When we embarked on this refinancing process, it was because Aurora’s ownership group at Summit Partners and KRG Capital Partners wanted to give Aurora every opportunity to succeed as a consolidator in an environment of challenging Medicare rate cuts. That same ownership group remains steadfast in its support of Aurora.”

Aurora Diagnostics is a specialized laboratory company focused on anatomic pathology at 21 primary community-based locations within the U.S.