RadNet, a provider of 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 second amended and restated first lien credit and guaranty agreement.
Barclays Bank, Capital One, J.P. Morgan Securities, RBC Capital Markets, TD Securities and Truist Securities acted as joint bookrunners and joint lead arrangers for the transaction.
The second amended and restated credit agreement provides for $725 million in senior secured first lien term loans and a $195 million senior secured revolving credit facility. Among other changes, pursuant to the second amended and restated credit agreement, the initial interest rate margin on the term loans and the revolving credit facility has been reduced to 3.25% per annum from 3.75% (in each case with further step-downs based on attainment of certain first lien net leverage ratio benchmarks), the LIBOR floor applicable to the term loans has been reduced to 0.75% from 1%, and the maturity date has been extended from July 1, 2023, to April 23, 2028, for the term loans and April 23, 2026, for the revolving credit facility.
RadNet used the proceeds of the initial term loans under the second amended and restated credit agreement to refinance the $601 million outstanding as of the closing of the transaction under the term and revolving loans, to pay fees and expenses related to the transaction, to pay accrued interest on the previously existing facilities through the date of closing, and to fund approximately $107 million to its balance sheet.
“We are very pleased with the market interest we received in the refinancing of our credit facilities,” Mark Stolper, executive vice president and CFO of RadNet, said. “We have been able to reduce our borrowing costs, extend the maturities of our debt, obtain significantly more operating flexibility and fund over $100 million to our balance sheet. We would like to thank our group of supportive lenders, lead arrangers and relationship banks.”
The borrower under the second amended and restated credit agreement is RadNet’s wholly-owned subsidiary, Radnet Management. The obligations of the borrower under the second amended and restated credit agreement are guaranteed by RadNet, 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.