Akumin secures $154M to support long-term growth
Akumin Inc. recently announced several developments intended to strengthen its finances and support the long-term growth of its imaging and radiation oncology services.
Prior to the holidays, the company shared that it would be restructuring its debt in addition to receiving new investments to the tune of over $150 million. These moves are intended to reduce near-term pressure while also adding new capital.
The details:
The agreement is between Akumin and certain noteholders representing over 95% of its outstanding senior secured notes due in 2027 and 2028, and Stonepeak, a leading alternative investment firm. Akumin has indicated that its existing debt will essentially be exchanged for new senior secured notes due in 2031, effectively refinancing what it owes and extending its repayment timeline. The new notes will carry a 9.75% interest rate, which can drop to 8.75% if Akumin meets certain credit rating targets. The exchange offer is expected to take place this month.
For Stonepeak’s part, the investment firm has committed to investing over $154 million in new capital to support Akumin’s long-term growth. Additionally, Akumin’s revolving credit facility, with roughly $119 million expected to be outstanding, will either convert into preferred equity or move to a lower-priority position, depending on lender participation.
“We have long held confidence in Akumin and the critical healthcare services it provides, and have been committed to providing growth capital and operational expertise to the business as needed,” Graham Brown, managing director at Stonepeak, said in an announcement. “We look forward to continuing to support the business as it executes on and advances its strategy for future success.”
The announcement follows a big week for the company at the annual meeting of the Radiological Society of North America, where Akumin unveiled its new offerings aimed at improving patient access to critical imaging exams. During the meeting, the company offered demonstrations of its new Axis Drop Trailer (patent-pending), which has the ability to lower completely to the ground in less than two minutes, eliminating the need for stairs and lifts, both of which can be difficult for some patients to navigate. Akumin also showcased its latest offerings in relocatable MRI suites, which were designed to address short-term facility needs while also providing experiences akin to those provided by permanent imaging centers.
In a release shared at the time of the meeting, Akumin CEO Henry Howe said the company’s new line of products was designed to “meet patient demand faster while maintaining the highest standard of care.”
In this most recent announcement, he indicated that the company’s financial moves will improve its ability to deliver such care.
“This transaction will enable us to further strengthen our financial foundation as we look to enhance our essential outpatient radiology and oncology services,” Howe said. “We are grateful for the continued support of our bondholders and Stonepeak, and believe this transaction underscores the value of our business and the services we provide to health systems, hospitals, physician groups, and patients all across the country.”
In addition to her background in journalism, Hannah also has patient-facing experience in clinical settings, having spent more than 12 years working as a registered rad tech. She began covering the medical imaging industry for Innovate Healthcare in 2021.