Radnet, Inc. (NASDAQ: RDNT) has announced a proposed refinancing of its existing term loan and revolving credit facility. As of December 31, 2023, the debt facilities that Radnet intends to refinance included a $679 million term loan balance due in April 2028 and an undrawn $195 million revolving credit facility maturing in April 2026.
The proposed refinancing transaction involves replacing these facilities with a $840 million term loan with a maturity of seven years and a $250 million revolving credit facility with a five-year term. Radnet expects to use the proceeds from any refinancing transaction to repay the existing term loan, pay fees and expenses of the transaction, and fund an additional approximately $148 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, noted that the company's recent strong operating results, successful public offering, and upgrade of its corporate credit ratings have substantially lowered its leverage and improved its access to capital. As a result, Radnet believes this enables it to opportunistically and proactively refinance its facilities to extend maturities, lower its cost of capital, and raise additional funds to support the future growth of its business.
Radnet, Inc. is the leading national provider of freestanding, fixed-site diagnostic imaging services and related information technology solutions in the United States based on the number of locations and annual imaging revenue. The company has a network of 366 owned and/or operated outpatient imaging centers in markets including Arizona, California, Delaware, Florida, Maryland, New Jersey, and New York, and has a total of over 9,700 employees, including affiliated radiologists, full-time and per diem employees, and technologists.
As a result of these announcements, the company's shares have moved 0.5% on the market, and are now trading at a price of $48.24. Check out the company's full 8-K submission here.
