Virtual Radiologic tweaks amendment for $42.5 million term loan add-on

By Sara Rosenberg

New York, May 27 - Virtual Radiologic revised its amendment proposal so that it is still getting a $42.5 million term loan add-on but not repricing its existing credit facility debt, according to a market source.

The term loan add-on, which is about two times oversubscribed, is priced at Libor plus 550 basis points with a 1.75% Libor floor, in line with current credit facility pricing.

Initially, the add-on was being talked at Libor plus 500 bps with a 1.5% Libor floor, and the company was looking to lower pricing on its roughly $213 million term loan and $40 million revolver to that level as well.

As part of the amendment, 101 soft call protection for one year is being added to the company's new and existing term loan borrowings.

Proceeds from the add-on will be used to fund a dividend.

GE Capital Markets is the lead bank on the deal.

Lenders were offered a 25 bps amendment fee.

In order to get the amendment for the add-on approved, the company only needed a majority vote, while to get the repricing done, 100% approval was needed. In the end though, the company ended up with 100% approval from lenders for its revised proposal.

Virtual Radiologic is an Eden Prairie, Minn.-based radiology practice and developer of radiologist workflow technology.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.