Attached files
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8-K - FORM 8-K - RadNet, Inc. | v180174_8-k.htm |
EX-4.2 - RadNet, Inc. | v180174_ex4-2.htm |
EX-4.1 - RadNet, Inc. | v180174_ex4-1.htm |
EX-4.3 - RadNet, Inc. | v180174_ex4-3.htm |
EX-10.1 - RadNet, Inc. | v180174_ex10-1.htm |
FOR
IMMEDIATE RELEASE
RadNet
Announces Closing of $585 Million Debt Refinancing Plan
LOS ANGELES, Calif., April 6, 2010 –
RadNet, Inc. (NASDAQ: RDNT), (the “Company”), a national leader in
providing high-quality, fixed-site outpatient diagnostic imaging services
through a network of 180 imaging centers, today announced the closing of its
debt refinancing plan for an aggregate of $585 million. The debt
refinancing plan included the issuance of a $285 million senior secured term
loan due April 6, 2016, a $100 million senior secured revolving credit facility
due April 6, 2015 and $200 million in aggregate principal amount of senior
unsecured notes due April 1, 2018 (the “Notes”).
The $285
million senior secured term loan and the $100 million senior secured revolving
credit facility are floating rate facilities, and we may request the interest
rate be based upon LIBOR (subject to a 2% LIBOR floor) plus an applicable LIBOR
margin of 3.75%. The $100 million senior secured revolving credit
facility will be undrawn at close. The $200 million in aggregate
amount of senior unsecured notes have a coupon of 10.375% and were issued at a
price of 98.680%.
In
connection with the debt refinancing plan, the Company's wholly-owned subsidiary
Radnet Management, Inc., (the “Borrower”), terminated its existing senior
secured term loan B, second lien term loan and revolving credit
facilities. The obligations under the new credit facilities are
guaranteed by the Company, all of the Borrower’s current and future wholly-owned
domestic subsidiaries and certain of its affiliates.
In
addition to refinancing the existing senior secured credit facilities, the net
proceeds of the debt refinancing plan will be used to fund the Company's
previously announced acquisitions of Truxtun Medical Group in Bakersfield,
California and the New Jersey operating subsidiary of Health Diagnostics
currently under letters of intent, fund cash to the Company’s balance sheet and
pay related fees and expenses.
The Notes
were issued by Radnet Management, Inc. and guaranteed jointly and severally on a
senior unsecured basis by all of its current and future wholly-owned domestic
restricted subsidiaries and the Company.
The Notes
were offered and sold in a private placement exempt from registration under the
Securities Act to qualified institutional buyers pursuant to Rule 144A and
Regulation S under the Securities Act of 1933, as amended (the “Securities
Act”).
This
press release does not constitute an offer to sell or the solicitation of an
offer to buy the Notes nor shall there be any sale of the Notes in any
jurisdiction in which such offer, solicitation or sale would be unlawful. The
Notes have not been and will not be registered under the Securities Act, or
applicable state securities laws, and may not be offered or sold in the United
States absent registration or pursuant to an applicable exemption from the
registration requirements of the Securities Act and applicable state securities
laws.
“Safe Harbor” Statement Under the
Private Securities Litigation Reform Act of 1995: This press release
contains forward-looking statements within the meaning of Section 27A of the
Securities Act and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements include, but are not limited to,
statements related to the anticipated use of proceeds therefrom. These
forward-looking statements involve known and unknown risks, uncertainties and
other factors discussed in the Company's filings with the Securities and
Exchange Commission (the “SEC”). Any forward-looking statements speak only as of
the date of this press release and, except to the extent required by applicable
securities laws, the Company expressly disclaims any obligation to update or
revise any of them to reflect actual results, any changes in expectations or any
change in events. If the Company does update one or more forward-looking
statements, no inference should be drawn that it will make additional updates
with respect to those or other forward-looking statements. For additional
information concerning risks, uncertainties and other factors that may cause
actual results to differ from those anticipated in the forward-looking
statements, and risks to the Company’s business in general, please refer to its
SEC filings, including its Annual Report on Form 10-K for the fiscal year ended
December 31, 2009, as amended.
Contact:
RadNet,
Inc.
Mark
Stolper, Executive Vice President and
Chief
Financial Officer
310-445-2800
Alliance
Advisors
Investors
Contact
Alan
Sheinwald
914-669-0222
asheinwald@allianceadvisors.net