RadNet scores $100M loan to fuel future acquisitions
Imaging center operator RadNet Inc. has scored a $100 million term loan, which it will use to fund future acquisitions and other “corporate initiatives.”
The Los Angeles-based radiology services provider announced the achievement Wednesday, with Barclays Bank PLC the lender. RadNet’s new term loan is slated to mature on April 18, 2031, coinciding with the $868.4 million balance on its existing credit line.
The nine-figure sum is in addition to its current cash balance of $717 million as of March 31. Leaders said these funds position RadNet to “advance our growth strategy and create long-term value for our stockholders.”
“We appreciate the continued support of Barclays and our relationship banks and term-loan lenders,” Mark Stolper, executive vice president and chief financial officer, said in a statement June 11. “This incremental financing increases our capacity to execute on a pipeline of acquisition opportunities while maintaining our conservative capital structure.”
Quarterly payments of principal on the loan will be about $2.4 million compared to $2.2 million prior to the amendment. All other terms and covenants remain unchanged, Stolper and colleagues noted.
RadNet has executed several acquisitions in recent months while expressing the desire for more. Last week, the company said it had finalized the purchase of Australia-based ultrasound artificial intelligence vendor See-Mode Technologies for an undisclosed sum. Plus, in April it announced the planned acquisition of breast imaging AI company iCAD for $103 million, a deal funded with stock rather than cash or debt.
In March, leaders shared plans to expand outside of RadNet’s eight core markets, potentially using the hefty cash balance. Currently, the company operates 401 outpatient imaging centers across Arizona, California, Delaware, Florida, Maryland, New Jersey, New York and Texas. RadNet last expanded geographically into the Houston market in 2024, starting with the acquisition of Houston Medical Imaging and its seven centers.
“I'll emphasize that we do have an active pipeline of imaging center acquisition opportunities,” Stolper told investors in April. “I'm highly confident that we will put some capital to work this year with some of the dislocation in the capital markets, both on the equity side as well as the debt side. It's putting more and more pressure on some of the smaller operators, some of the private equity-owned operators, and that bodes well for more opportunities on the core imaging center side, going forward. We have been extremely disciplined with regards to price and valuation. We'll continue to be that way. We feel we have a very good sense of what businesses are worth in our industry, but I'm also highly confident that we'll get some transactions done this year.”
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.