Lumexa Imaging refinances debts, fills out board of directors

Fresh off raising nearly $463 million from a public stock offering, radiology provider Lumexa Imaging has refinanced its debts and filled out its board of directors. 

The Raleigh, North Carolina-based company entered into an amended credit agreement on Dec. 17 with Barclay’s Bank and other lenders. Lumexa has secured a new $825 million term loan maturing in 2032, along with a revolving credit line worth another $250 million, maturing in 2030. 

Each bears interest at SOFR (Secured Overnight Financing Rate) plus 3% or the prime rate plus 2%, according to a filing with the U.S. Securities and Exchange Commission.  

“The amended credit agreement contains various restrictive covenants that limit the ability of the company’s subsidiaries to incur additional debt, pay dividends and other distributions, and engage in certain other transactions,” the SEC filing notes. 

This comes after Lumexa reportedly had plans to use $375 million of the $435 million in net proceeds from the IPO to pay part of its $1.2 billion in previous outstanding debts.  S&P Global hinted at the forthcoming refinancing in a ratings update published Monday.

Meanwhile, Lumexa also has filled out its board of directors, according to another SEC filing. Effective Dec. 10, Brett Brodnax, Bridget Karlin, Matthew Lungren, MD, and Robert Mittl, MD, joined Lumexa’s board. Brodnax is executive chairman of United Surgical Partners, an ambulatory surgery platform, which he joined in 1999. Karlin  founded BEK Strategies, a business technology consulting firm in which she has served as managing director since 2022. Dr. Lungren is a technical advisor in the office of the CTO for Microsoft who previously served as an interventional radiologist and research faculty member at Stanford, where he co-founded and led its center for artificial intelligence. And Dr. Mittl is chair of Lumexa Imaging’s National Physician Leadership Board, a role he assumed in 2021, according to another filing.

They join others on the board also including Chair Lee Cooper, who previously served as Lumexa’s CEO; Molly Joseph managing partner of Cypress Pass Ventures, a healthcare investment firm; Glenn Eisenberg, a senior advisor to Labcorp Holdings, a lab testing company; Brian Regan, a general partner with private equity firm Welsh, Carson, Anderson & Stowe; and Caitlin Zulla, Lumexa’s CEO. 

In the same filing, Lumexa said it has entered into an indemnification agreement with each of its directors and executives in connection with the IPO. The agreement requires that, among other things, the company must shield its leaders against liabilities that may arise by reason of their service to Lumexa, and to pay certain expenses incurred because of any proceedings against them. 

The prospectus also offers details on compensation for Lumexa’s executives last year. Cooper earned over $8 million as chairman and former CEO, which included $800,000 in salary and $6.8 million in stock awards. Chief Information Officer Gerry Lewis took home total pay of $640,405; Chief Legal Officer Julie Szeker tallied $622,405; and John Perkins, CEO prior to Cooper until April 1, 2024, collected nearly $2.4 million. 

Perkins was Lumexa’s founding CEO (when it was previously known as US Radiology Specialists). The company did not give a reason for his departure last year, but the filing discloses that he was terminated from the post on Dec. 22, 2023. As part of the firing, he received a lump sum severance disbursement of $2 million, along with consulting payments for helping with the leadership transition.