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CREDIT AND GUARANTY AGREEMENT dated as of

Key Takeaway: CREDIT AND GUARANTY AGREEMENT dated as of October 10, 2012 RADNET MANAGEMENT, INC., CERTAIN SUBSIDIARIES AND AFFILIATES OF RADNET MANAGEMENT, INC., The Several Lenders from Time to Time GE CAPITAL MARKETS, INC., RBC CAPITAL MARKETS, DEUTSCHE BANK SECURITIES INC., as Join

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CREDIT AND GUARANTY AGREEMENT
dated as of October 10, 2012
RADNET MANAGEMENT, INC.,
CERTAIN SUBSIDIARIES AND AFFILIATES
OF RADNET MANAGEMENT, INC.,
The Several Lenders from Time to Time
GE CAPITAL MARKETS, INC.,
RBC CAPITAL MARKETS,
DEUTSCHE BANK SECURITIES INC.,
as Joint Bookrunners and Joint Lead Arrangers,
GENERAL ELECTRIC CAPITAL CORPORATION,
as Syndication Agent,
RBC CAPITAL MARKETS,
DEUTSCHE BANK SECURITIES
as Co-Documentation Agents
as Administrative Agent and Collateral Agent
________________________________________________________
$451,250,000 Senior Secured Credit
________________________________________________________
Page
ARTICLE I. DEFINITIONS AND INTERPRETATION 2
Section 1.01 Definitions. 2
Section 1.02 Accounting Terms. 36
Section 1.03 Interpretation, Etc. 37
ARTICLE II. LOANS AND LETTERS OF CREDIT 37
Section 2.01 Term Loans. 37
Section 2.02 Revolving Loans. 38
Section 2.03 Swing Line Loans. 39
Section 2.04 Issuance of Letters of Credit and Purchase of Participations Therein. 41
Section 2.05 Pro Rata Shares; Availability of Funds. 46
Section 2.06 Use of Proceeds. 46
Section 2.07 Evidence of Debt; Register; Notes. 47
Section 2.08 Interest on Loans. 47
Section 2.09 Conversion/Continuation. 50
Section 2.10 Default Interest. 50
Section 2.11 Fees. 51
Section 2.12 Scheduled Payments/Commitment Reductions. 52
Section 2.13 Voluntary Prepayments/Commitment Reductions. 53
Section 2.14 Mandatory Prepayments/Commitment Reductions. 56
Section 2.15 Application of Prepayments/Reductions. 57
Section 2.16 General Provisions Regarding Payments. 58
Section 2.17 Ratable Sharing. 59
Section 2.18 Making or Maintaining Eurodollar Rate Loans; 60
Section 2.19 Increased Costs; Capital Adequacy. 62
Section 2.20 Taxes; Withholding, Etc. 63
Section 2.21 Obligation to Mitigate. 66
Section 2.22 Defaulting Lenders. 66
Section 2.23 Removal or Replacement of a Lender. 67
Section 2.24 Incremental Facilities. 68
ARTICLE III. CONDITIONS PRECEDENT 71
Section 3.01 Closing Date. 71
Section 3.02 Conditions to Each Credit Extension. 74
ARTICLE IV. REPRESENTATIONS AND WARRANTIES 75
Section 4.01 Organization; Requisite Power and Authority; Qualification 75
Section 4.02 Equity Interests and Ownership. 75
Section 4.03 Due Authorization. 75
Section 4.04 No Conflict. 76
Section 4.05 Governmental Consents. 76
Section 4.06 Binding Obligation. 76
Section 4.07 Historical Financial Statements. 76
Section 4.08 Projections. 76
Section 4.09 No Material Adverse Change. 77
Section 4.10 Certain Fees. 77
Section 4.11 Adverse Proceedings, Etc. 77
Section 4.12 Payment of Taxes. 77
Section 4.13 Properties. 77
Section 4.14 Environmental Matters. 78
Section 4.15 No Defaults. 78
Section 4.16 Material Contracts. 78
Section 4.17 Governmental Regulation. 78
Section 4.18 Margin Stock 78
Section 4.19 Employee Matters. 78
Section 4.20 Employee Benefit Plans. 79
Section 4.21 Solvency. 80
Section 4.22 Compliance with Statutes, Etc. 80
Section 4.23 Disclosure. 80
Section 4.24 PATRIOT Act. 80
Section 4.25 Intellectual Property. 80
Section 4.26 Health Care Matters. 81
ARTICLE V. AFFIRMATIVE COVENANTS 84
Section 5.01 Financial Statements and Other Reports. 84
Section 5.02 Existence. 87
Section 5.03 Payment of Taxes and Claims. 87
Section 5.04 Maintenance of Properties. 87
Section 5.05 Insurance. 88
Section 5.06 Books and Records; Inspections. 88
Section 5.07 Lenders' Meetings. 88
Section 5.08 Compliance with Contractual Obligations and Laws. 88
Section 5.09 Environmental Compliance 88
Section 5.10 Subsidiaries. 89
Section 5.11 Additional Material Real Estate Assets. 89
Section 5.12 Additional Collateral. 89
Section 5.13 Further Assurances. 90
Section 5.14 Control Accounts; Approved Deposit Accounts. 90
Section 5.15 Maintenance of Ratings. 91
Section 5.16 Compliance with Healthcare Laws. 91
Section 5.17 Post-Closing Undertakings 91
ARTICLE VI. NEGATIVE COVENANTS 92
Section 6.01 Indebtedness. 92
Section 6.02 Liens. 93
Section 6.03 No Further Negative Pledges. 95
Section 6.04 Restricted Junior Payments. 95
Section 6.05 Restrictions on Subsidiary Distributions. 96
Section 6.06 Investments. 96
Section 6.07 Financial Covenants. 97
Section 6.08 Fundamental Changes; Disposition of Assets; Acquisitions. 98
Section 6.09 Disposal of Subsidiary Interests. 99
Section 6.10 Sales and Lease Backs. 99
Section 6.11 Transactions with Shareholders and Affiliates 100
Section 6.12 Conduct of Business. 100
Section 6.13 Permitted Activities of Holdings. 100
Section 6.14 Amendments or Waivers of Organizational Documents, Material Contracts and Certain Indebtedness. 100
Section 6.15 Fiscal Year. 101
ARTICLE VII. GUARANTY 101
Section 7.01 Guaranty of the Obligations. 101
Section 7.02 Contribution by Guarantors. 101
Section 7.03 Payment by Guarantors. 102
Section 7.04 Liability of Guarantors Absolute. 102
Section 7.05 Waivers by Guarantors. 104
Section 7.06 Guarantors' Rights of Subrogation, Contribution, Etc. 105
Section 7.07 Subordination of Other Obligations. 106
Section 7.08 Continuing Guaranty. 106
Section 7.09 Authority of Guarantors or the Borrower. 106
Section 7.10 Financial Condition of the Borrower. 106
Section 7.11 Bankruptcy, Etc. 106
Section 7.12 Discharge of Guaranty Upon Sale of Guarantor. 107
ARTICLE VIII. EVENTS OF DEFAULT 107
Section 8.01 Events of Default. 107
ARTICLE IX. AGENTS 110
Section 9.01 Appointment of Agents. 110
Section 9.02 Powers and Duties. 111
Section 9.03 General Immunity. 111
Section 9.04 Agents Entitled to Act as Lender. 113
Section 9.05 Lenders' Representations, Warranties and Acknowledgment. 114
Section 9.06 Right to Indemnity. 114
Section 9.07 Successor Administrative Agent, Collateral Agent and Swing Line Lender. 115
Section 9.08 Security Documents and Guaranty. 116
Section 9.09 Withholding Taxes. 118
Section 9.10 Administrative Agent May File Proofs of Claim. 118
ARTICLE X. MISCELLANEOUS 118
Section 10.01 Notices 118
Section 10.02 Expenses. 120
Section 10.03 Indemnity. 121
Section 10.04 Set Off. 122
Section 10.05 Amendments and Waivers. 122
Section 10.06 Successors and Assigns; Participations. 125
Section 10.07 Independence of Covenants, Etc. 129
Section 10.08 Survival of Representations, Warranties and Agreements. 129
Section 10.09 No Waiver; Remedies Cumulative. 129
Section 10.10 Marshalling; Payments Set Aside. 129
Section 10.11 Severability. 130
Section 10.12 Obligations Several; Independent Nature of Lenders' Rights. 130
Section 10.13 Table of Contents and Headings. 130
Section 10.14 APPLICABLE LAW. 130
Section 10.15 CONSENT TO JURISDICTION. 130
Section 10.16 WAIVER OF JURY TRIAL. 131
Section 10.17 Confidentiality. 132
Section 10.18 Usury Savings Clause. 133
Section 10.19 Counterparts. 133
Section 10.20 Effectiveness; Entire Agreement; No Third Party Beneficiaries. 133
Section 10.21 PATRIOT Act. 134
Section 10.22 Electronic Execution of Assignments. 134
Section 10.23 No Fiduciary Duty. 134
SCHEDULES: 1.01(a) Tranche B Term Loan Commitments
1.01(b) Revolving Commitments
1.01(c) Notice Addresses
1.01(d) Existing Letters of Credit
4.01 Jurisdictions of Organization and Qualification
4.02 Equity Interests and Ownership
4.26 Compliance with Health Care Laws and Permits
5.11 Actions with Respect to Additional Material Real Estate Assets
5.17 Post-Closing Undertakings
6.01 Certain Indebtedness
6.02 Certain Liens
6.06 Certain Investments
EXHIBITS: A 1 Borrowing Notice
A 2 Conversion/Continuation Notice
A 3 Issuance Notice
B 1 Tranche B Term Loan Note
B 2 Revolving Loan Note
B 3 Swing Line Note
B 4 Incremental Term Loan Note
C Compliance Certificate
D-1 Opinion of Sheppard, Mullin, Richter & Hampton
D-2 Opinion of Jeff Linden
E Assignment Agreement
F Certificate re Non Bank Status
G 1 Closing Date Certificate
G 2 Solvency Certificate
H Counterpart Agreement
I Pledge and Security Agreement
J Intercompany Note
K Joinder Agreement
CREDIT AND GUARANTY AGREEMENT
This CREDIT AND GUARANTY
AGREEMENT, dated as of October 10, 2012, is entered into by and among RADNET MANAGEMENT, INC., a California corporation
(the "Borrower"), RADNET, INC., a Delaware corporation ("Holdings"), CERTAIN SUBSIDIARIES
and AFFILIATES OF THE BORROWER, as Guarantors, the Lenders party hereto from time to time, General
Electric Capital Corporation ("GECC"), as syndication agent (the "Syndication Agent"),
RBC CAPITAL MARKETS 1 and Deutsche
Bank Securities Inc. ("DBSI"), as co-documentation agents (together, the "Co-Documentation
Agents") and BARCLAYS BANK PLC ("Barclays"), as Administrative Agent (together with its permitted
successors in such capacity, the "Administrative Agent") and as Collateral Agent (together with its permitted
successors in such capacity, the "Collateral Agent").
WHEREAS, capitalized
terms used in these Recitals have the respective meanings set forth for such terms in Section 1.1 hereof;
Lenders have agreed to extend certain credit facilities to the Borrower in an aggregate principal amount not to exceed $451,250,000,
consisting of $350,000,000 aggregate principal amount of Tranche B Term Loans and $101,250,000 aggregate principal amount of Revolving
Commitments, the proceeds of which shall be used to repay certain existing Indebtedness of the Borrower and its Subsidiaries, pay
expenses related thereto and to provide funds for other general corporate purposes of the Borrower and its Subsidiaries;
Borrower has agreed to secure all of its Obligations by granting to the Collateral Agent, for the benefit of the Secured Parties,
a First Priority Lien on substantially all of its assets, including a pledge of all of the Equity Interests of each of its Domestic
Subsidiaries, 66.0% of all of the voting Equity Interests of each of its Foreign Subsidiaries and all of the non-voting Equity
Interests of each of its Foreign Subsidiaries; and
Guarantors have agreed to guarantee the obligations of the Borrower hereunder and to secure their respective Obligations by granting
to the Collateral Agent, for the benefit of the Secured Parties, a First Priority Lien on substantially all of their respective
assets, including a pledge of all of the Equity Interests of each of their respective Domestic Subsidiaries (including the Borrower),
66.0% of all of the voting Equity Interests of each of their respective Foreign Subsidiaries and all of the non-voting Equity Interests
of each of their respective Foreign Subsidiaries.
in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows:
Markets is a brand name for the capital markets activities of Royal Bank of Canada and its affiliates
DEFINITIONS AND INTERPRETATION
Section 1.01 Definitions.
The following terms used herein, including in the preamble, recitals, exhibits and schedules hereto, shall have the following meanings:
Consideration" means the purchase consideration for any Permitted Acquisition and all other payments by any Loan
Party or any of its Subsidiaries in exchange for, or as part of, or in connection with, any Permitted Acquisition, whether paid
in cash or by exchange of Equity Interests or of properties or otherwise and whether payable at or prior to the consummation of
such Permitted Acquisition or deferred for payment at any future time, whether or not any such future payment is subject to the
occurrence of any contingency, and includes any and all payments representing the purchase price and any assumptions of Indebtedness,
"earn-outs" and other agreements to make any payment the amount of which is, or the terms of payment of which are,
in any respect subject to or contingent upon the revenues, income, cash flow or profits (or the like) of any Person or business.
"Adjusted Eurodollar
Rate" means, for any Interest Rate Determination Date with respect to an Interest Period for a Eurodollar Rate Loan,
the rate per annum obtained by dividing (and rounding upward to the next whole multiple of 1/100 of 1.00%) (i) (a) the rate per
annum equal to the rate determined by the Administrative Agent to be the offered rate which appears on the page of the Reuters
Screen which displays an average British Bankers Association Interest Settlement Rate (such page currently being LIBOR01 page)
for deposits (for delivery on the first day of such period) with a term equivalent to such period in Dollars, determined as of
approximately 11:00 a.m. (London, England time) on such Interest Rate Determination Date, or (b) in the event the rate referenced
in the preceding clause (a) does not appear on such page or service or if such page or service shall cease to be available, the
rate per annum equal to the rate determined by the Administrative Agent to be the offered rate on such other page or other service
which displays an average British Bankers Association Interest Settlement Rate for deposits (for delivery on the first day of such
period) with a term equivalent to such period in Dollars, determined as of approximately 11:00 a.m. (London, England time) on such
Interest Rate Determination Date, or (c) in the event the rates referenced in the preceding clauses (a) and (b) are not available,
the rate per annum equal to the offered quotation rate to first class banks in the London interbank market by the Administrative
Agent for deposits (for delivery on the first day of the relevant period) in Dollars of amounts in same day funds comparable to
the principal amount of the applicable Loan of the Administrative Agent, in its capacity as a Lender, for which the Adjusted Eurodollar
Rate is then being determined with maturities comparable to such period as of approximately 11:00 a.m. (London, England time) on
such Interest Rate Determination Date, by (ii) an amount equal to (a) one minus (b) the Applicable Reserve Requirement. Notwithstanding
anything herein to the contrary, in respect of Tranche B Term Loans only, the Adjusted Eurodollar Rate shall not be less than
1.25% per annum at any time.
Agent" has the meaning specified in the preamble hereto.
"Adverse Proceeding"
means any action, suit, proceeding, hearing (in each case, whether administrative, judicial or otherwise), governmental investigation
or arbitration (whether or not purportedly on behalf of any Loan Party or any of its Subsidiaries) at law or in equity, or before
or by any Governmental Authority, domestic or foreign (including any Environmental Claims), whether pending or, to the knowledge
of any Loan Party or any of its Subsidiaries, threatened against or adversely affecting any Loan Party or any of its Subsidiaries
or any property of any Loan Party or any of its Subsidiaries.
has the meaning set forth in Section 2.18(b).
has the meaning set forth in Section 2.18(b).
means, as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with,
that Person. For the purposes of this definition, "control" (including, with correlative meanings, the terms "controlling",
"controlled by" and "under common control with"), as applied to any Person, means the possession, directly
or indirectly, of the power (i) to vote 10.00% or more of the Securities having ordinary voting power for the election of directors
of such Person or (ii) to direct or cause the direction of the management and policies of that Person, whether through the ownership
of voting securities or by contract or otherwise.
means each of the Administrative Agent, the Syndication Agent, the Collateral Agent and the Co-Documentation Agents and solely
for purposes of Article IX, the Joint Lead Arrangers.
has the meaning set forth in Section 10.01(b).
Due" has the meaning set forth in Section 2.17.
"Aggregate Payments"
Last updated: Oct 10, 2012