Radiology Partners seeks $485M term loan to fuel teleradiology acquisition
Radiology Partners is reportedly seeking a $485 million term loan to fuel its purchase of London-based Everlight Radiology.
Moody’s reported news of the debt move on Monday, noting that RP’s ratings and outlook are unaffected by the incremental term loan offering. Proceeds from the proposed debt raise—together with about $180 million in cash on the balance sheet and rollover equity—will be used to fund the purchase and any related expenses.
First announced on Aug. 25, Rad Partners is aiming to add one of the world’s largest global teleradiology outfits. Founded in 2006, Everlight bills itself as the leading international provider of remote reads, employing over 800 rads, who serve clients across the U.K., Ireland, Australia, New Zealand and South Africa.
“We expect financial leverage to decline moderately but remain elevated over the next 12 to 18 months, and free cash flow to be slightly positive in 2026,” Moody’s said in its announcement, shared Oct. 5. “The acquisition expands Radiology Partners' operations outside the U.S. through Everlight's teleradiology platform and creates an opportunity to extend the company's Mosaic technology into international markets.”
Concurrent with the transaction, Rad Partners also expected to increase the size of its revolving credit line from $415 million up to $520 million. However, Moody’s expects the charge account to remain undrawn, once the deal closes. Rad Partners separately put out a news announcement on Monday related to the debt raising process and what it means for current noteholders. Moody’s expects the transaction to be “leverage neutral,” with Rad Partners’ adjusted debt-to-earnings ratio at about 8x pro forma for the acquisition, excluding potential synergies achieved by adding Everlight.
Headquartered in Nashville, Tennessee, Rad Partners is the largest radiology practice in the U.S., Moody’s notes. The company provides diagnostic and interventional care and employs over 4,000 radiologists (prior to adding Everlight), delivering services to more than 3,400 hospitals and outpatient facilities across all 50 U.S. states. Physician partners own almost 30% of the company, while the remaining equity is held by financial sponsors including New Enterprise Associates, Whistler Capital Partners and other investors.
Radiology Partners generated about $3.3 billion in revenue for the 12 months ending June 30, Moody’s estimated. You can read more about its plans to purchase Everlight Radiology in our previous coverage.
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.