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RadNet Secures Additional $75MM in Existing Credit Facility

May 01, 2015, 07:40 AM
Filed Under: Medical

RadNet, Inc. announced that its wholly owned subsidiary, Radnet Management, Inc., has entered into a joinder to its existing senior secured first lien credit agreement to provide for the borrowing of $75.0 million of incremental first lien term loans.

Proceeds from the incremental term loans will be used to repay all the borrowings outstanding under the first lien revolving loan facility, fund cash to the balance sheet and pay approximately $1 million of fees and expenses associated with the transaction.

After giving effect to the incremental term loans, RadNet has approximately $470 million of senior secured first lien term loans outstanding under the first lien credit agreement and $180 million of senior secured second lien term loans outstanding under the second lien credit agreement. In addition, the company has access to a $101.25 million first lien revolving loan facility, which upon closing of the financing transaction is undrawn.

Although funded as a separate series of term loans, the incremental term loans will be treated as part of the same class as the tranche B term loans currently outstanding under the existing first lien credit agreement. The incremental term loans which are provided for under the joinder agreement will bear the same interest rate as the rate currently payable on the existing term loans under the first lien credit agreement, which is (a) the adjusted LIBOR rate plus 3.25% or (b) the base rate plus 2.25%. The adjusted LIBOR rate has a minimum floor of 1.0%.

RadNet, Inc. is the leading national provider of freestanding, fixed-site diagnostic imaging services in the United States based on the number of locations and annual imaging revenue.

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