RadNet launches $485 million term loan B at Libor plus 350-375 bps

By Sara Rosenberg

New York, June 6 – RadNet Management Inc. launched on Monday its $485 million seven-year term loan B with price talk of Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and has maximum leverage ratio and maximum capital expenditures covenants, the source said.

The company’s $585 million credit facility also includes a $100 million five-year revolver.

Barclays, SunTrust Robinson Humphrey Inc., Capital One, Credit Suisse Securities (USA) LLC and RBC Capital Markets are the bookrunners on the deal.

Commitments are due at 5 p.m. ET on June 20, the source added.

Proceeds will be used to refinance an existing $444.8 million first-lien term loan, pay down any outstanding revolving credit facility borrowings, which were $16.3 million at March 31, and repay a portion of an existing $180 million second-lien term loan.

Closing is expected this month.

Net first-lien leverage is 3.5 times and net total leverage is 4.8 times.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

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