Akumin closed two credit facilities for a principal amount of $130 million with a syndicate of lenders. The facilities consist of an $100 million term loan for and a $30 million revolving credit facility.
BBVA Compass acted lead arranger, sole bookrunner and administrative agent on the facilities. Bank of Nova Scotia acted as syndication agent and National Bank of Canada as documentation agent. The lending syndicate was comprised of BBVA Compass, Bank of Nova Scotia, National Bank of Canada, BankUnited and Siemens Financial Services.
The facilities have a maturity date of August 15, 2023. The proceeds from the term loan were used to repay Akumin’s existing credit facilities of approximately $74.6 million and to pay the purchase price of approximately $25 million for the acquisition of 11 diagnostic centers operated by Rose Radiology Centers and for related transaction costs. Subject to the terms of the credit agreement, the revolver may be used for permitted acquisitions and other general corporate purposes.
“We are very excited about this new credit agreement. This is an important milestone in the history of our company, as it diversifies our sources of capital and enhances our future access to the debt markets,” said Riadh Zine, Akumin president and CEO. “We believe increasing our credit facilities to a total of $130 million from $80 million and increasing the number of participants in our syndicate to five from two lenders is a testament to the solid foundation that Akumin has built in its sector.”
The credit facilities may be incrementally increased by an aggregate principal amount of up to $40 million, subject to lender commitment and certain other conditions.
Toronto-based Akumin provides freestanding, fixed-site outpatient diagnostic imaging services in the U.S. with a network of 89 owned and/or operated imaging centers.