Radiology Partners launches $300 million term loan at 98.5-99.27 OID

By Sara Rosenberg

New York, Aug. 9 – Radiology Partners Inc. launched on Monday its $300 million incremental first-lien term loan due July 9, 2025 with price talk of Libor plus 425 basis points with a 0% Libor floor and an original issue discount of 98.5 to 99.27, according to a market source.

The spread and floor on the incremental term loan match pricing on the existing term loan. The fungibility threshold for the incremental term loan is 99.27 original issue discount.

The incremental term loan and the existing term loan are getting 101 soft call protection for six months, the source said.

Barclays is the left bookrunner on the deal and the administrative agent.

Commitments are due at noon ET on Thursday.

Proceeds will be used to finance three near-term acquisitions under letters of intent, with an aggregate purchase price of about $362 million, that are expected to close this month.

In conjunction with the transaction, the company is requesting amendments from existing lenders to allow for modifications to certain investment baskets and the definition of consolidated EBITDA to align with the practice’s indentures, the source added.

Lenders are being offered a 12.5 bps consent fee for the amendment.

Radiology Partners is an El Segundo, Calif.-based radiology physician practice management company.

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