RadNet launches $389 million term loan at Libor plus 325-350 bps

By Sara Rosenberg

New York, March 20 - RadNet Inc. launched on Wednesday its $389,125,000 senior secured term loan (B+) due Oct. 10, 2018 with price talk of Libor plus 325 basis points to 350 bps with a 1.25% Libor floor, according to a market source.

The debt includes $40 million of incremental term loan borrowings and $349,125,000 of existing term loan borrowings.

The incremental loan is being offered at an original issue discount of 99½ and the existing loan is being offered at par, the source said.

There is 101 soft call protection for one year on the entire term loan.

Covenants include a maximum total leverage ratio and maximum capital expenditures.

Barclays, Deutsche Bank Securities Inc., GE Capital Markets and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to reprice the existing term loan from Libor plus 425 bps with a 1.25% Libor floor, to repay revolver debt and for general corporate purposes.

Commitments are due at 5 p.m. ET on March 27, the source added.

Closing is expected in April.

RadNet is a Los Angeles-based owner and operator of fixed-site diagnostic imaging centers.

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