RadNet boosts revolving credit line by $57.5M as leaders eye avenues for further growth
Outpatient imaging provider RadNet has boosted its revolving credit line by $57.5 million as the firm seeks avenues for further growth, officials announced on Monday.
With the amendment, the Los Angeles-based firm now has $195 million in revolving credit at its disposal, in addition to its more than $630 million in “first lien” term loans. Both debts have a maturity date of July 1, 2023, RadNet noted.
“While our cash balance is strong—$84.5 million as of the quarter ended June 30, 2020—completing this transaction improves our financial flexibility and our ability to grow our business and execute our strategic plan,” Executive VP and Chief Financial Officer Mark Stolper said in an Aug. 31 statement.
Officials touted RadNet’s strong cash position during the company’s recent second quarter earnings call. Despite revenue declining about $125 million since the start of the pandemic, “aggressive actions” including temporarily closing some centers and furloughing employees, helped it weather the crisis with “no cash burn.”
As of June 30, RadNet had some $604.5 million in net debt compared to $706 million at the same time last year. Stolper said during the Aug. 10 earnings call that he expects the company’s cash balance to grow by the year’s end, “absent any acquisitions or a major setback from a second wave of COVID-19.”
Earlier this summer, the CFO noted that RadNet has seen an uptick in M&A activity amid the pandemic as smaller, less capitalized operators struggle to manage their businesses during the downturn. The company bills itself as the “leading” provider of freestanding, fixed-site imaging services, with 332 such centers across the U.S.
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.