S&P rates RadNet, loans B

S&P said it gave its B issue-level rating and 4 recovery rating to RadNet Management Inc.’s proposed $195 million first-lien revolving credit facility and $675 million first-lien term loan. The 4 recovery rating indicates an expectation for average (30%-50%, rounded estimate: 45%) recovery in default.

The company plans to use the proceeds to repay its term loan of about $611 million, cover fees and expenses, and add more than $50 million cash to the balance sheet.

“This transaction extends RadNet’s recently upsized $195 million revolver through 2026. Together, the upsized revolver and new term loan improve liquidity by increasing access to capital and adding cash to the balance sheet and through lower annual amortization than the previous term loan. That said, the increase in first-lien debt and lower mandatory amortization modestly weaken the recovery prospects on the senior secured debt compared with the previous capital structure,” S&P said in a press release.

RadNet’s B issuer credit rating and stable rating outlook on are unchanged, the agency said.

© 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.