Moody's gives RadNet loans B3, Caa2

Moody's Investors Service said it assigned a B3 rating to the proposed first-lien credit facilities of RadNet Management, Inc., a subsidiary of Primedex Health Systems, Inc., consisting of a $10 million senior secured revolving credit facility and a $125 million senior secured first lien term loan and a Caa2 rating to the proposed $45 million senior secured second-lien term loan.

Moody's said it also assigned a speculative-grade liquidity rating of SGL-2. Additionally, Moody's assigned a corporate family rating of B3 to Primedex.

The agency said the ratings reflect the company's significant amount of financial leverage, constraints on free cash flow due to the need for considerable investment in capital expenditures in order to grow and the competitive nature of the industry, including regional and national companies as well as individual and group physician practices with access to reasonable equipment financing.

© 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.