Full Press Release Details
Commitments to Amend its Credit Facility, resulting in 0.25% Reduction in Interest Rates
LOS ANGELES, November 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 $872,812,500 of outstanding term loans
under the Credit Agreement, and is undrawn on its revolving credit facility. With the successful completion of the First Amendment, the
interest rate on the term loans will be reduced by 0.25% to, at RadNet's election, either Term SOFR plus 2.25% or the alternate
base rate plus 1.25%. The interest rate on the revolving credit facility will also be reduced by 0.25%, which is subject to a pricing
grid based upon RadNet's leverage ratio. All other terms of the term loans and revolving credit facility, including their respective
maturity dates, will remain unchanged.
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 $2.2 million of annual cash interest expense reduction. The closing under the First Amendment is
expected to occur next week.
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 $750 million of cash on our balance sheet, a leverage ratio of Adjusted EBITDA(1) to Net Debt of
under 1.0x and term loans that do not mature until 2031, we are well-positioned with the liquidity necessary to implement our business
plan in the coming years."
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
(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.
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.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer