RadNet amended its senior secured first lien credit agreement to raise an additional $170 million of senior secured first lien term loans, the proceeds of which were used to repay and retire RadNet’s second lien term loan. According to a related 8-K filing, Barclays served as administrative agent.

RadNet’s senior secured first lien credit facilities now consist of an aggregate of $637 million of first lien term loans and a $117.5 million senior secured revolving credit facility, which was undrawn as of June 30, 2017. The first lien term loans have a maturity date of July 1, 2023 and the revolving credit facility has a maturity date of July 1, 2021.

The first lien term loans and the revolving credit facility are both floating rate facilities, and RadNet may request that the interest rate thereon be based upon either an adjusted Eurodollar rate or a base rate plus an applicable margin.

After giving effect to the amendment, the applicable margin for eurodollar rate loans under the first lien credit agreement will initially be 3.75% per annum and the applicable margin for base rate loans under the first lien credit agreement will be 2.75% per annum. The applicable margin for eurodollar rate loans can adjust in the future to be as low as 3.25% per annum or as high as 4.5% per annum and the applicable margin for base rate loans can adjust in the future to be as low as 2.25% per annum or as high as 3.5% per annum, in each case based upon RadNet’s net debt leverage ratio. Previously, the applicable margin on RadNet’s second lien term loans was 7.00% for eurodollar rate loans and 6.00% for base rate loans.

“We are very pleased to have been able to increase our senior secured first lien credit facilities and to retire our second lien credit facilities at this time,” said Mark Stolper, EVP and CFO of RadNet. “By completing this transaction, we were able to initially reduce our annual cash interest expense by almost $3 million.”

The borrower under the first lien credit facilities is RadNet’s subsidiary, RadNet Management. The obligations of the borrower under the first lien credit facilities are guaranteed by RadNet, all of the borrower’s current and future wholly-owned domestic subsidiaries and certain of its affiliates.

Barclays Bank, Capital One, SunTrust Robinson Humphrey, Credit Suisse Securities (USA) and RBC Capital Markets acted as joint bookrunners and joint lead arrangers in the transaction.

Los Angeles-based RadNet provides fixed site diagnostic imaging services through a network of 298 owned and/or operated outpatient imaging centers.