Primedex abandons RadNet Management $150 million bond financing plan

By Paul A. Harris

St. Louis, April 20 - RadNet Management Inc., a wholly owned subsidiary of Primedex Health Systems Inc., abandoned a planned $150 million offering of senior notes and instead said it will enter into a $160 million credit facility provided by an affiliate of Cerberus Capital Management LP.

The facility - part of a non-binding financing proposal accepted by Primedex - will have a 31/2-year term, Primedex said in a news release Monday.

RadNet Management had previously planned to sell $150 million of senior secured notes due 2012 (Caa1/B). Citigroup had the bookrunning mandate on the Rule 144A/Regulation S offering, proceeds of which had been earmarked to repay debt.

On March 25, the notes had been talked at 11¼% to 11½%, according to a source close to the deal.

Primedex is a Los Angeles provider of diagnostic imaging services.

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