RadNet Secures Commitments to Amend its Credit Facility, Resulting in 0.25% Reduction in Interest Rates
RadNet announced the completion of pricing and allocations for Amendment No. 1 to its Credit Agreement, which will reduce interest rates by 0.25% on its $872.8 million outstanding term loans. The new rates will be either Term SOFR plus 2.25% or alternate base rate plus 1.25%. This amendment is expected to result in approximately $2.2 million in annual cash interest expense reduction. The company maintains a strong financial position with nearly $750 million in cash, a leverage ratio under 1.0x, and term loans maturing in 2031.
RadNet ha annunciato il completamento della determinazione dei prezzi e delle assegnazioni per la Modifica n. 1 al suo Contratto di Credito, che ridurrà i tassi d'interesse di 0,25% sui suoi prestiti a termine per un totale di 872,8 milioni di dollari. I nuovi tassi saranno pari al Term SOFR più 2,25% o al tasso base alternativo più 1,25%. Si prevede che questa modifica comporterà una riduzione della spesa per interessi in contante annuale di circa 2,2 milioni di dollari. L'azienda mantiene una solida posizione finanziaria con quasi 750 milioni di dollari in liquidità, un rapporto di indebitamento inferiore a 1,0x e prestiti a termine che scadranno nel 2031.
RadNet anunció la finalización de la fijación de precios y asignaciones para la Enmienda No. 1 a su Acuerdo de Crédito, que reducirá las tasas de interés en 0,25% sobre sus préstamos a plazo pendientes de 872,8 millones de dólares. Las nuevas tasas serán ya sea Term SOFR más 2,25% o la tasa base alternativa más 1,25%. Se espera que esta enmienda resulte en una reducción del gasto anual en intereses en efectivo de aproximadamente 2,2 millones de dólares. La empresa mantiene una sólida situación financiera con casi 750 millones de dólares en efectivo, una relación de apalancamiento por debajo de 1,0x y préstamos a plazo que vencen en 2031.
RadNet는 신용 계약의 개정안 1호에 대한 가격 책정 및 배정 완료를 발표했으며, 이는 8억 7280만 달러의 미결정 텀 론에 대한 이자율을 0.25% 줄이게 됩니다. 새로운 이자율은 Term SOFR + 2.25% 또는 대체 기준 금리 + 1.25%가 됩니다. 이 개정안은 연간 약 220만 달러의 현금 이자 비용 감소로 이어질 것으로 예상됩니다. 회사는 7억 5000만 달러에 가까운 현금을 보유하고 있으며, 레버리지 비율은 1.0x 미만이고 2031년에 만료되는 텀 론을 유지하고 있습니다.
RadNet a annoncé l'achèvement de la détermination des prix et des allocations pour l'Amendement n° 1 de son Contrat de Crédit, ce qui réduira les taux d'intérêt de 0,25% sur ses prêts à terme de 872,8 millions de dollars restants. Les nouveaux taux seront soit le Term SOFR plus 2,25% ou le taux de base alternatif plus 1,25%. Cet amendement devrait entraîner une réduction d'environ 2,2 millions de dollars des dépenses d'intérêts en espèces par an. L'entreprise maintient une solide situation financière avec près de 750 millions de dollars en liquidités, un ratio d'endettement inférieur à 1,0x et des prêts à terme arrivant à échéance en 2031.
RadNet hat den Abschluss der Preisgestaltung und Zuteilung für die Änderungsnr. 1 seines Kreditvertrags bekannt gegeben, wodurch die Zinssätze um 0,25% auf seine ausstehenden 872,8 Millionen Dollar an Terminkrediten gesenkt werden. Die neuen Sätze werden entweder Term SOFR plus 2,25% oder alternativer Basiszinssatz plus 1,25% betragen. Es wird erwartet, dass diese Änderung zu einer jährlichen Reduzierung der Barzinsaufwendungen von etwa 2,2 Millionen Dollar führt. Das Unternehmen weist eine starke Finanzlage auf, mit nahezu 750 Millionen Dollar in bar, einem Verschuldungsgrad von unter 1,0x und Terminkrediten, die im Jahr 2031 fällig werden.
- Interest rate reduction of 0.25% on $872.8M term loans
- Expected annual cash interest savings of $2.2M
- Strong cash position with $750M on balance sheet
- Low leverage ratio under 1.0x Adjusted EBITDA to Net Debt
- Long-term debt maturity extending to 2031
- Six-month call protection provided to lenders
Insights
This credit facility amendment represents a meaningful financial improvement for RadNet. The
The extended maturity to 2031 and undrawn revolving credit facility provide additional stability. While the six-month call protection creates a temporary refinancing restriction, the overall terms are favorable given current market conditions. The company's ability to secure better rates reflects lender confidence in RadNet's market position and financial health.
LOS ANGELES, Nov. 22, 2024 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services, today announced that it has completed pricing and allocations for Amendment No. 1 to Credit and Guaranty Agreement (the “First Amendment”) which will reduce the interest rates payable under its Third Amended and Restated First Lien Credit and Guaranty Agreement (the “Credit Agreement”).
RadNet has
In connection with the First Amendment, RadNet has provided call protection to the lenders for a period of six months following the First Amendment. RadNet estimates that the First Amendment will result in approximately
Mark Stolper, Executive Vice President and Chief Financial Officer of RadNet, commented “I would like to thank our relationship banks and term loan lenders for their continued support of our company. With almost
RadNet’s wholly-owned subsidiary, Radnet Management, Inc. is the borrower under the First Amendment. The borrower’s obligations under the First Amendment are guaranteed by RadNet, and substantially all of the borrower’s current and future wholly-owned domestic subsidiaries and certain of its affiliates. With certain exceptions, the obligations are secured by substantially all of the assets of the borrower, RadNet and such subsidiaries and affiliates.
Footnotes
(1) The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, each from continuing operations and adjusted for losses or gains on the sale of equipment, other income or loss, debt extinguishments and non-cash equity compensation. Adjusted EBITDA includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries, and is adjusted for non-cash or extraordinary and one-time events taken place during the period.
Adjusted EBITDA is reconciled to its nearest comparable GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure used as analytical indicator by RadNet management and the healthcare industry to assess business performance, and is a measure of leverage capacity and ability to service debt. Adjusted EBITDA should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies.
About RadNet, Inc.
RadNet, Inc. is the leading national provider of freestanding, fixed-site diagnostic imaging services in the United States based on the number of locations and annual imaging revenue. RadNet has a network of 399 owned and/or operated outpatient imaging centers. RadNet’s markets include Arizona, California, Delaware, Florida, Maryland, New Jersey, New York and Texas. In addition, RadNet provides radiology information technology and artificial intelligence solutions marketed under the DeepHealth brand, teleradiology professional services and other related products and services to customers in the diagnostic imaging industry. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technologists, RadNet has a total of over 10,000 employees. For more information, visit http://www.radnet.com.
Contact:
RadNet, Inc.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer
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