RadNet Announces Pricing and Upsizing of its Previously Announced Term Loan and Revolving Credit Facility Refinancing Transaction
11 April 2024 - 8:00PM
RadNet, Inc. (NASDAQ: RDNT), a national leader in
providing high-quality, cost-effective, fixed-site outpatient
diagnostic imaging services, today announced that it has completed
pricing and allocations for the proposed refinancing of its
existing term loan.
On April 3, 2024, RadNet announced its intention
to refinance debt facilities that, at December 31, 2023, included a
$679 million term loan balance due April of 2028 and an undrawn
$195 million revolving credit facility maturing April of 2026.
RadNet also previously announced it was seeking to replace these
facilities with a proposed $840 million term loan with a maturity
of seven years and a $250 million revolving credit facility with a
five year term. In addition to repaying the existing term loan,
RadNet announced it expected to use the proceeds from any
refinancing transaction to pay fees and expenses of the transaction
and to fund an additional approximately $148 million of cash to its
balance sheet for growth opportunities and general corporate
purposes.
RadNet today announced it has accepted orders
and completed allocations on a new $875 million term loan, an
increase of $35 million from the transaction previously announced.
The term loan priced at SOFR plus 2.50% with an original issue
discount of 99.25, and a seven year term. Subject to final
commitments, RadNet has also accepted orders for a $282 million
revolving credit facility with a five year term, an increase of $32
million from the transaction previously announced. In addition to
repaying the existing $679 million balance on its term loan, RadNet
expects to use the proceeds from the refinancing transaction to pay
fees and expenses of the transaction and to fund an additional
approximately $180 million of cash to its balance sheet for growth
opportunities and general corporate purposes.
Mark Stolper, Executive Vice President and Chief
Financial Officer of RadNet, commented, “We are very pleased with
the strong market interest we received in the refinancing of our
credit facilities. We have been able to reduce our borrowing costs,
extend the maturities of our debt, obtain significantly more
operating flexibility and fund approximately $180 million to our
balance sheet. We would like to thank our group of supportive
lenders, lead arrangers and relationship banks.”
The completion of the refinancing transaction
remains subject to agreement on final documentation, as well as
market and other customary closing conditions. Closing and funding
of the refinance transaction is expected to occur in April
2024.
About RadNet, Inc.
RadNet, Inc., is the leading national provider
of freestanding, fixed-site diagnostic imaging services and related
information technology solutions (including artificial
intelligence) in the United States based on the number of locations
and annual imaging revenue. RadNet has a network of 366 owned
and/or operated outpatient imaging centers. RadNet’s markets
include Arizona, California, Delaware, Florida, Maryland, New
Jersey, New York and Texas. Together with affiliated radiologists,
inclusive of full-time and per diem employees and technologists,
RadNet has a total of over 9,700 employees. For more information,
visit http://www.radnet.com.Forward Looking
Statements
This press release contains “forward-looking
statements” within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements are expressions of our current beliefs,
expectations and assumptions regarding the future of our business,
future plans and strategies, projections, and anticipated future
conditions, events and trends. Forward-looking statements can
generally be identified by words such as: “anticipate,” “intend,”
“plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,”
“strategy,” “future,” “likely,” “may,” “should,” “will” and similar
references to future periods. Forward-looking statements in this
press release include, among others, statements we make regarding
our ability to complete the proposed refinancing of our senior
credit facilities, the timing and ultimate terms of any such
refinancing, and the expected use of proceeds from any such
potential refinancing transaction.
Forward-looking statements are neither
historical facts nor assurances of future performance. Because
forward-looking statements relate to the future, they are
inherently subject to uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of our control. Therefore, you should not place undue
reliance on any of these forward-looking statements. Important
factors that could impact our ability to refinance our current
indebtedness include, among others, the following:
- a decline or anticipated decline in our operating results or
financial position, as a result of operational issues, regulatory
changes, litigation, casualty loss, or other factors;
- changes in general economic conditions nationally and
regionally in the markets in which we operate;
- volatility in interest and exchange rates, or credit
markets;
- the occurrence of hostilities, political instability or
catastrophic events; and
- the emergence or reemergence of and effects related to future
pandemics, epidemics and infectious diseases.
Any forward-looking statement contained in this
press release is based on information currently available to us and
speaks only as of the date on which it is made. We undertake no
obligation to publicly update any forward-looking statement,
whether written or oral, that we may make from time to time,
whether as a result of changed circumstances, new information,
future developments or otherwise, except as required by applicable
law.
Contact:RadNet,
Inc.Mark Stolper,
310-445-2800Executive Vice President and Chief
Financial Officer
RadNet (NASDAQ:RDNT)
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