Daily News: October 12, 2012

Barclays, GE, Others Refinance RadNet Credit Facilities


RadNet, Inc., a national provider of high-quality, fixed-site outpatient diagnostic imaging services through a network of 237 imaging centers, announced the closing of the previously announced refinancing of its senior secured credit facilities for an aggregate of $451.25 million. Barclays, GE Capital, RBC Capital Markets and Deutsche Bank acted as joint bookrunners in the transaction.

The refinancing includes a new credit agreement providing for a $350 million senior secured term loan due on October 10, 2018 (or October 1, 2017 if the company’s 10-3/8% senior notes due 2018 have not been refinanced by such date) and a $101.25 million senior secured revolving credit facility due on October 10, 2017 (or October 1, 2017 if the company’s 10-3/8% senior notes due 2018 have not been refinanced by such date).

The $350 million term loan and the $101.25 million revolving credit facility are floating rate facilities, and the borrower may request the interest rate be based upon LIBOR (subject to a 1.25% LIBOR floor for the term loan) plus an applicable margin of 4.25%.

The proceeds of the new credit facilities are being used to repay the company’s existing senior secured term loan in full, to repay a portion of the outstanding loans under the company’s existing senior secured revolving credit facility and certain other indebtedness, to pay fees and expenses related to the transaction and for general corporate purposes.

“We are very pleased to have been able to refinance our senior secured credit facility on such favorable terms,” said Dr. Howard Berger, president and CEO of RadNet. “While we are pleased that the annual interest cost of these facilities is less than that of the old facilities, we are most excited that this financing positions us more effectively to execute our future strategic and growth plans. By completing this transaction, we were able to successfully extend the maturities of the senior portion of our capital structure and provide for significantly enhanced operating flexibility.”

The borrower under the new credit facility is the company’s subsidiary, RadNet Management, Inc. The obligations of the borrower under the new credit facility are guaranteed by the company, all of the borrower’s current and future wholly owned domestic subsidiaries and certain of its affiliates. The obligations are secured by substantially all of the assets of the borrower, the company and such subsidiaries and affiliates.

Previously on abfjournal.com:

RadNet Launches Refinancing of Senior Credit Facilities, Friday, September 21, 2012