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Radiologix $160 million notes via Jefferies, Deutsche on road through Dec. 7
By Paul A. Harris
St. Louis, Mo., Nov. 26 - High-yield first-time issuer Radiologix, Inc. launched an offering of $160 million of senior notes due 2008 Monday, an informed source told Prospect News. The source identified the underwriters as Jefferies & Co. and Deutsche Banc Alex. Brown.
The roadshow commenced Monday, and will conclude on Dec. 7, the source said.
The Rule 144A notes are non-callable for five years.
Paul Streiber, Radiologix director of investor relations, told Prospect News that although the company is making its first-ever offering on the junk bond market, it has outstanding privately placed convertibles.
"We have subordinated convertible debt placed with DB Capital, Streiber said. "But that was a private placement to DB Capital and they are the only holders."
Streiber said that the proceeds from the new offering will go to repay debt and for capital expenditures.
"First and foremost we're going to repay indebtedness under our bank senior credit facility," he said. "Right now we have a $100 million term loan, and a $60 million revolver with our bank group, led by GE Capital. We paid down $8 million under the revolver.
"The other uses of proceeds will be to purchase some of our leased equipment, and for general corporate purposes."
Radiologix is a subsidiary of Dallas, Texas-based Radiology Service Networks. The company owns and operates 120 diagnostic imaging centers across the country.
"They are centers that you can walk into, that you've probably been referred to by your physician - either a primary care physician or a specialist - for an X-ray, a CT, an MRI, fluoroscopy, ultrasound, and procedures such as that," he said.
"They are mostly freestanding facilities that physicians would refer you to for a diagnostic image."
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