$RDNT Completion of Amendment to 1st Lein Facilities, Retirement of 2nd Lein Term Loan
LOS ANGELES, Aug. 22, 2017 — RadNet, Inc. (NASDAQ:RDNT), a national leader in providing high-quality, fixed-site outpatient diagnostic imaging services through a network of 298 owned and/or operated outpatient imaging centers, today announced the successful closing of the previously announced efforts to amend (the “Amendment”) its senior secured first lien credit agreement to raise an additional $170,000,000 of senior secured first lien term loans, the proceeds of which were used to repay and retire RadNet’s second lien term loan.
After the issuance of the additional first lien term loans described above, RadNet’s senior secured first lien credit facilities consist of an aggregate of $637 million of first lien term loans and a $117.5 million senior secured revolving credit facility, which was undrawn as of June 30, 2017. 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.
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 either an Adjusted Eurodollar Rate or a Base Rate (each as defined in the first lien credit agreement), plus an applicable margin. After giving effect to the Amendment, the applicable margin for Eurodollar Rate loans under the first lien credit agreement will initially be 3.75% per annum and the applicable margin for Base Rate loans under the first lien credit agreement will be 2.75% per annum. The applicable margin for Eurodollar Rate loans can adjust in the future to be as low as 3.25% per annum or as high as 4.5% per annum and the applicable margin for Base Rate loans can adjust in the future to be as low as 2.25% per annum or as high as 3.5% per annum, in each case based upon RadNet’s net debt leverage ratio. Previously, the applicable margin on RadNet’s second lien term loans was 7.00% for Eurodollar Rate loans and 6.00% for Base Rate loans.
“We are very pleased to have been able to increase our senior secured first lien credit facilities and to retire our second lien credit facilities at this time,” said Mark Stolper, Executive Vice President and Chief Financial Officer of RadNet. “By completing this transaction, we were able to initially reduce our annual cash interest expense by almost $3 million. Based upon the pricing matrix in the Amendment, if we continue to deleverage our balance sheet in the future, we could save up to an additional $3 million of cash interest expense annually. Furthermore, we were able to extend the maturities on the $168.0 million portion of term debt which was formerly our second lien loan by over two years. Lastly, we significantly improved our financial flexibility. Once again, we would like to thank our group of supportive lenders.”
The borrower under the first lien credit facilities is RadNet’s subsidiary, RadNet Management, Inc. The obligations of the borrower under the first lien credit facilities 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 of the borrower and the guarantors under the first lien credit facilities are secured by substantially all of the assets of the borrower, RadNet and its subsidiaries and affiliates.
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.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements related to the anticipated use of proceeds from the new credit facilities and statements regarding the Company’s future interest rate expense and financial flexibility. Forward-looking statements are based on management’s current expectations as of the date of this press release and are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results to differ materially from the statements contained herein. For additional information concerning risks, uncertainties and other factors that may cause actual results to differ from those anticipated in the forward-looking statements, and risks to the Company’s business in general, please refer to its SEC filings, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as amended. RadNet undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
About RadNet, Inc.
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 298 owned and/or operated outpatient imaging centers. RadNet’s core markets include California, Maryland, Delaware, New Jersey and New York. In addition, RadNet provides radiology information technology solutions, teleradiology professional services and other related products and services to customers in the diagnostic imaging industry. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 7,300 employees. For more information, visit http://www.radnet.com.
Contact: RadNet, Inc. Mark Stolper Executive Vice President and Chief Financial Officer 310-445-2800
TraderPower Featured Companies
Top Small Cap Market News
- $SOBR InvestorNewsBreaks – SOBR Safe Inc. (NASDAQ: SOBR) Closes on $8.2M Private Placement
- $CLNN InvestorNewsBreaks – Clene Inc. (NASDAQ: CLNN) Announces Participation at Two Upcoming Investor Conferences
- $ATBHF Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) Releases Updated Report on Storm Copper Project Drilling Program
- $LGVN InvestorNewsBreaks – Longeveron Inc. (NASDAQ: LGVN) to Present at This Month’s Congenital Heart Surgeons’ Society Annual Meeting
- $LEXX InvestorNewsBreaks – Lexaria Bioscience Corp. (NASDAQ: LEXX) Begins Subject Dosing in Human Pilot Study #3 Evaluating Oral DehydraTECH-Processed Tirzepatide
- $FSTTF InvestorNewsBreaks – First Tellurium Corp. (CSE: FTEL) (OTC: FSTTF) Shares Additional Information on the PyroDelta Thermoelectric Generator, Relationship with Subsidiary
- $TMET.V Gold Stutters as Strong US Jobs Data Dampens Expectations of Large Rate Cuts
- $RFLXF JPMorgan Executive Says US Backlash Against ESG Is Exaggerated
- $SFWJ InvestorNewsBreaks – Software Effective Solutions Corp. (d/b/a MedCana) (SFWJ) Releases Report on Series of Acquisitions, Multiple Cannabis Licenses
- $EAWD IEA Hosts G20 Ministers, Influential Personalities to Discuss Clean and Affordable Energy Transition
Recent Posts
- $EAWD IEA Hosts G20 Ministers, Influential Personalities to Discuss Clean and Affordable Energy Transition
- $SFWJ InvestorNewsBreaks – Software Effective Solutions Corp. (d/b/a MedCana) (SFWJ) Releases Report on Series of Acquisitions, Multiple Cannabis Licenses
- $RFLXF JPMorgan Executive Says US Backlash Against ESG Is Exaggerated
- $TMET.V Gold Stutters as Strong US Jobs Data Dampens Expectations of Large Rate Cuts
- $FSTTF InvestorNewsBreaks – First Tellurium Corp. (CSE: FTEL) (OTC: FSTTF) Shares Additional Information on the PyroDelta Thermoelectric Generator, Relationship with Subsidiary
- $LEXX InvestorNewsBreaks – Lexaria Bioscience Corp. (NASDAQ: LEXX) Begins Subject Dosing in Human Pilot Study #3 Evaluating Oral DehydraTECH-Processed Tirzepatide
- $LGVN InvestorNewsBreaks – Longeveron Inc. (NASDAQ: LGVN) to Present at This Month’s Congenital Heart Surgeons’ Society Annual Meeting
- $ATBHF Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) Releases Updated Report on Storm Copper Project Drilling Program
Recent Comments
Archives
- October 2024
- January 2023
- June 2022
- December 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009