RadNet, a provider of outpatient diagnostic imaging services, closed the previously announced refinancing of its senior secured first lien term loan facility and senior secured revolving credit facility pursuant to the terms of a third amended and restated first lien credit and guaranty agreement.
The third amended and restated credit agreement provides for an $875 million senior secured first lien term loan and a $282 million senior secured revolving credit facility. Barclays, Banco Santander, Capital One, JPMorgan Chase, Mizuho Bank, Truist Securities and Wells Fargo Securities acted as joint bookrunners and joint lead arrangers on the transaction.
The interest rate on the term loan is either, at the election of RadNet, term SOFR (with a floor of 0%) plus 2.5% or the prime rate (with a floor of 0%) plus 1.5%. The maturity date of the term loan is April 18, 2031. The interest rate on the revolving credit facility is initially, at the election of RadNet, term SOFR (with a floor of 0%) plus 3% or the prime rate (with a floor of 0%) plus 2% (with step-downs based on attainment of certain first lien net leverage ratio benchmarks). The maturity date of the revolving credit facility is April 18, 2029.
RadNet used the proceeds of the term loan to refinance the $679 million term loans outstanding under its prior agreement (as of Dec. 31, 2023) as well as accrued interest under previously existing facilities through closing. It also used the proceeds of the term loan to pay fees and expenses related to the transaction and to fund approximately $168 million (after giving effect to the payment of approximately $12.6 million of accrued interest under the previously existing facilities) to RadNet’s balance sheet.
RadNet’s wholly-owned subsidiary, Radnet Management, is the borrower under the third amended and restated credit agreement. The borrower’s obligations under the third amended and restated credit agreement are guaranteed by RadNet and substantially all of the borrower’s current and future wholly-owned domestic subsidiaries and certain of its affiliates. With certain exceptions, the obligations are secured by substantially all of the assets of the borrower, RadNet and such subsidiaries and affiliates.
