RadNet seeks to refinance $679M term loan, fuel future ‘growth opportunities’
RadNet Inc. is refinancing a $679 million term loan as the publicly traded imaging center operator aims to fuel future “growth opportunities.”
The debt is due in April 2028, leaders said Wednesday, and RadNet also wants to refinance an undrawn $195 million revolving credit line set to mature in 2026. The Los Angeles-based company hopes to replace these two debt vehicles with a new $840 million term loan that matures in seven years, along with a $250 million revolving credit line maturing in five years.
“Our recent strong operating results, successful public offering and upgrade of our corporate credit rating have substantially lowered our leverage and improved our access to capital,” Mark Stolper, RadNet’s executive VP and chief financial officer, said in an April 3 announcement. “We believe this enables us to opportunistically and proactively refinance our facilities to extend maturities, lower our cost of capital and raise additional funds to support the future growth of our business.”
RadNet recently raised $230 million through a public stock offering, inked a new partnership with Providence, and had its credit rating upgraded by Moody’s. In addition to paying off the term loan, RadNet would use the proceeds to cover any related transaction fees. About $148 million of cash from the deal is earmarked for “future growth opportunities and general corporate purposes.”
“The terms and completion of any proposed refinancing transaction would be subject to negotiations with lenders, as well as market and other conditions,” the company said. “Accordingly, RadNet cannot provide any assurance that it will complete a refinancing transaction on terms that are favorable to RadNet or its investors.”
RadNet bills itself as the leading national provider of freestanding, fixed-site diagnostic imaging services in the U.S. It owns or operates 377 outpatient imaging centers and counting, concentrated in Arizona, California, Delaware, Florida, Maryland, New Jersey and New York. In February, RadNet also announced its arrival in Houston, acquiring seven imaging centers with an eye toward further deal-making down the line.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.