RadNet upsizes six-year term loan B to $285 million, firms pricing at Libor plus 375 bps

By Sara Rosenberg

New York, April 1 - RadNet Inc. increased the size of its six-year term loan B to $285 million from $275 million and finalized pricing at Libor plus 375 basis points, the tight end of the Libor plus 375 bps to 400 bps guidance, according to a market source.

In addition, 101 soft call protection for one year was added to the term loan B, the source said.

As before, the B loan carries a 2% Libor floor and was sold at an original issue discount of 99.

The company's now $385 million credit facility (Ba3/B+) also includes a $100 million five-year revolver priced in line with initial talk at Libor plus 375 bps with a 2% Libor floor and an upfront fee of two points.

Barclays Capital, GE Capital Markets, Deutsche Bank, RBC Capital Markets and Jefferies are the lead banks on the deal.

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 new revolver is expected to be undrawn at close.

Other funding for the refinancing will come from a senior unsecured notes offering, which was downsized to $200 million from $210 million as a result of the term loan B upsizing.

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

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