Kaye Scholer Advises Varian on Lending Agreement for NYS’ First-Ever Proton Therapy Facility
Chicago-based Finance counsel Lauretta Moran represented Varian Medical Systems Inc. as a member of the lender group providing a $242 million loan to a proposed proton therapy facility in Manhattan that will provide state-of-the-art targeted radiation for a number of head, neck, eye and pediatric cancers. The lending group was led by JP Morgan Chase Bank NA and it also included an affiliate of Goldman Sachs.
In addition to the lending transaction, proceeds of which will go to a $145.5 million building loan and $97.1 million project loan for the proposed facility, Lauretta also advised Varian on related agreements, through which it will provide its ProBeam system to the facility and will also provide 10 years of service on the system for approximately $115 million.
Varian president and CEO Dow Wilson said the two transactions enable the company to “be part of an innovative and cooperative initiative by leading cancer clinicians to provide patients in the New York area and around the world with the most advanced proton treatment capabilities.”
Palo Alto-based Varian is the world’s leading manufacturer of medical devices and software for treating cancer and other medical conditions with radiation. The proposed facility will be New York State’s first proton therapy treatment center and is backed by New York Proton Center, a consortium of local hospitals and health care providers including Memorial Sloan Kettering Cancer Center, Mount Sinai Health System, Montefiore Health System and ProHEALTH Medical Management LLC.
The lending transaction involved more than 139 agreements at closing time, with multiple parties represented by numerous lawyers from a large number of major law firms. Varian staffed the transactions leanly, with Lauretta serving as the sole outside counsel to the company on all agreements across both transactions.
“I truly appreciate how valuable Lauretta has been here and how her value is also reflected in your firm’s commitment to cost effectiveness,” said Alison Nichols, Varian Chief Counsel, Particle Therapy.