RadNet launches term loan at Libor plus 375-400 bps, revolver at Libor plus 375 bps

By Sara Rosenberg

New York, March 16 - RadNet Inc. launched its $275 million six-year term loan on Tuesday with price talk of Libor plus 375 basis points to 400 bps and its $100 million five-year revolver with talk of Libor plus 375 bps, according to a market source.

Both tranches include a 2% Libor floor, the source said.

The term loan is being offered at an original issue discount in the 99 area and the revolver is being offered with two points upfront, the source added.

Barclays Capital, GE Capital Markets, Deutsche Bank, RBC Capital Markets and Jefferies are the lead banks on the$375 million deal (Ba3/B+).

Security is a first-priority interest in all of the company's tangible and intangible assets, including, but not limited to, a stock pledge of all of its current and future wholly owned domestic subsidiaries.

Proceeds will be used to help refinance the company's existing revolver due 2011, term loan B due 2012 and second-lien loan due 2013. The revolver is expected to be undrawn at close.

Other funding for the refinancing will come from a $210 million senior unsecured notes offering.

Completion of the credit facility is contingent on completion of the notes.

Closing is expected in early April.

RadNet is a Los Angeles-based provider of diagnostic imaging services.

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