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RadNet
,
(the "Company"), a national leader in providing high-quality, fixed-site
outpatient diagnostic imaging services through a network of 237 imaging
centers, today announced the closing of the previously announced refinancing
of its senior secured credit facilities for an aggregate of $451.25 million.
The refinancing includes a new credit agreement providing for a $350 million
senior secured term loan due on October 10, 2018 (or October 1, 2017 if the
Company's 10-3/8% senior notes due 2018 have not been refinanced by such date)
and a $101.25 million senior secured revolving credit facility due on October
10, 2017 (or October 1, 2017 if the Company's 10-3/8% senior notes due 2018
have not been refinanced by such date).
The $350 million term loan and the $101.25 million revolving credit facility
are floating rate facilities, and the Borrower may request the interest rate
be based upon LIBOR (subject to a 1.25% LIBOR floor for the term loan) plus an
applicable margin of 4.25%.
The proceeds of the new credit facilities are being used to repay the
Company's existing senior secured term loan in full, to repay a portion of the
outstanding loans under the Company's existing senior secured revolving credit
facility and certain other indebtedness, to pay fees and expenses related to
the transaction and for general corporate purposes.
"We are very pleased to have been able to refinance our senior secured credit
facility on such favorable terms," said Dr. Howard Berger, President and Chief
Executive Officer of RadNet. "While we are pleased that the annual interest
cost of these facilities is less than that of the old facilities, we are most
excited that this financing positions us more effectively to execute our
future strategic and growth plans. By completing this transaction, we were
able to successfully extend the maturities of the senior portion of our
capital structure and provide for significantly enhanced operating
flexibility. We are gratified by the successful reception we received in the
debt capital markets, and we remain energized and confident about our
Company's position in the imaging marketplace and our overall operating
model."
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