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Varian Medical Systems Books $88 Million Order to Equip Proton Treatment Center
Date:10/3/2011

PALO ALTO, Calif., Oct. 3, 2011 /PRNewswire/ -- Varian Medical Systems (NYSE: VAR) today announced it has booked an $88 million order to provide its ProBeam system for the Scripps Proton Therapy Center being developed in San Diego through collaboration between Scripps Health, Scripps Clinic Medical Group and Advanced Particle Therapy, of Nevada.  The equipment order for the five room center that will be operated by Scripps Health was issued by the California Proton Treatment Center (CPTC), a special purpose entity formed by Advanced Particle Therapy which is acting as developer for the $225 million project.  Concurrent with the order booking in the fourth quarter of fiscal year 2011, Varian has also recorded revenue for this equipment under the "percentage of completion method."

Varian has also signed a 10-year agreement valued at approximately $60 million to service its ProBeam system for the center which is currently under construction and scheduled to open in 2013.  Service revenue will be recorded in the future over the life of the contract and has not been added to the company's backlog.

Varian is partnering with ORIX Capital Markets of Dallas in a $165 million loan facility to finance the completion and startup operations of the new center.  Varian is participating in the credit facility with a $115 million loan commitment through its subsidiary in Switzerland and ORIX is making a $50 million loan commitment. The loan carries a minimum interest rate of 8.25 percent with a four-year term and two possible one-year extensions.  ORIX, which is the loan agent for the facility, will endeavor to syndicate up to approximately 60 percent of Varian's loan commitment. Advanced Particle Therapy ha
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SOURCE Varian Medical Systems
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