RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services, has successfully completed the pricing and allocations for the proposed refinancing of its existing term loan.
The company announced its intention to refinance debt facilities that, at December 31, 2023, included a $679 million term loan balance due in April 2028 and an undrawn $195 million revolving credit facility maturing in April 2026. RadNet sought 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.
The latest announcement revealed that RadNet has accepted orders and completed allocations on a new $875 million term loan, an increase of $35 million from the initially proposed transaction. The term loan priced at SOFR plus 2.50% with an original issue discount of 99.25 and a seven-year term. Additionally, the company has accepted orders for a $282 million revolving credit facility with a five-year term, an increase of $32 million from the transaction previously announced.
Mark Stolper, the executive vice president and chief financial officer of RadNet, expressed satisfaction with the strong market interest received in the refinancing of their credit facilities. He highlighted that the company has been able to reduce its borrowing costs, extend the maturities of its debt, obtain significantly more operating flexibility, and fund approximately $180 million to its balance sheet.
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.
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 are expected to occur in April 2024.
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 and a total of over 9,700 employees, including affiliated radiologists, full-time and per diem employees, and technologists. The market has reacted to these announcements by moving the company's shares -0.2% to a price of $48.43. For more information, read the company's full 8-K submission here.
