RadNet, Inc. announced the successful closing of the previously announced refinancing of its senior secured first lien term loan facility and senior secured revolving credit facility. The refinancing provides for $485 million senior secured first lien term loans and a $117.5 million senior secured revolving credit facility. 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, provided that both maturity dates shall be shortened to September 25, 2020 in the event that the second lien term loans under RadNet’s second lien credit facility have not been repaid, refinanced or extended prior to September 25, 2020. Barclays Bank PLC, Capital One, National Association, Suntrust Robinson Humphrey, Inc., Credit Suisse Securities (USA) LLC and RBC Capital Markets acted as joint bookrunners and joint lead arrangers in the transaction.
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 LIBOR (subject to a 1% LIBOR floor for the term loans) plus an applicable margin of 3.75% per annum.
Except for the size, term, pricing and certain representations and covenants, the amended and restated credit agreement evidencing the first lien term loans and the revolving credit facility is substantially similar to RadNet’s existing senior secured credit agreement.
The proceeds of the amended and restated credit facilities are being used to refinance RadNet’s existing senior secured first lien credit obligations, to repay $12 million of the outstanding term loans under RadNet’s existing second lien credit facility, to pay fees and expenses related to the transaction and to provide approximately $10 million for general corporate purposes.
“We are very pleased to have been able to refinance our senior secured first lien credit facilities at this time,” said Dr. Howard Berger, President and Chief Executive Officer of RadNet. “By completing this transaction, we were able to successfully extend the maturities of the senior portion of our capital structure and improve our financial flexibility. We would like to thank our group of supportive lenders.”
The borrower under the amended and restated credit facility is RadNet’s subsidiary, RadNet Management, Inc. The obligations of the borrower under the amended and restated credit facility are guaranteed by RadNet, 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.
RadNet, Inc. is the leading national provider of free-standing, fixed-site diagnostic imaging services in the United States based on the number of locations and annual imaging revenue. RadNet has a network of 309 owned and/or operated outpatient imaging centers. RadNet's core markets include California, Maryland, Delaware, New Jersey, New York and Rhode Island. In addition, RadNet provides radiology information technology solutions, teleradiology professional services and other related products and services to customers in the diagnostic imaging industry.