RadNet, Inc. Secures Improved Credit Terms in Recent Amendment

RadNet, Inc. (NASDAQ: RDNT) recently announced a significant development through the execution of an amendment to its credit facility. The company, along with its wholly-owned subsidiary, RadNet Management, Inc., entered into Amendment No. 1 to Credit and Guaranty Agreement on November 26, 2024. This agreement, with lenders and financial institutions, including Barclays Bank PLC acting as administrative agent and collateral agent on behalf of the lenders, marks a pivotal moment for RadNet.

Key provisions of the amendment include the issuance of $872,812,500 of term loans by the Borrower to refinance existing term loans under the Restated Credit Agreement. Additionally, the interest rates on the term loans and revolving credit facility provided under the Restated Credit Agreement have been reduced by 0.25%. The amended interest rate on the term loans is now either Term SOFR plus 2.25% or the alternate base rate plus 1.25%, while the revolving credit facility’s interest rate is currently either Term SOFR plus 2.75% or the alternate base rate plus 1.75%, with adjustments based on the Company’s first lien net leverage ratio.

Despite these changes, all other terms of the Restated Credit Agreement, including maturity dates, payment terms, covenants, events of default, and security, remain unchanged. In conjunction with the First Amendment, RadNet provided call protection to the lenders for a six-month period. A complete copy of the Amendment is available as Exhibit 10.1 in the company’s recent SEC filing.

RadNet also issued a press release regarding the Amendment, anticipating approximately $2.2 million in annual cash interest expense reduction through the improved terms. Mark Stolper, RadNet’s Chief Financial Officer, expressed gratitude towards the relationship banks and term loan lenders for their support, highlighting the company’s solid financial position with substantial cash reserves and a favorable leverage ratio.

This strategic move underscores RadNet’s commitment to enhancing its financial flexibility and optimizing interest expenses. The company’s innovative approach to managing its credit facilities aligns with its broader business strategy.

The positive response from investors was evident in the market, with RadNet’s stock trading on the NASDAQ exchange under the ticker symbol “RDNT.” The company’s proactive steps to bolster its financial structure and reduce interest expenses further solidify its position in the industry.

Investors and stakeholders will be keen on how RadNet leverages these improved credit terms to drive growth and operational excellence in the coming quarters.

This press release contains information about the recent developments at RadNet, Inc. Further details can be found in the company’s 8-K filing available on the SEC’s website.

According to RadNet’s recent press release, the company provided contact details for Mark Stolper, the Executive Vice President and Chief Financial Officer, for further inquiries or information dissemination.

This article does not constitute financial advice and should not be interpreted as a recommendation to buy or sell RadNet, Inc. securities.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read RadNet’s 8K filing here.

RadNet Company Profile

RadNet, Inc, together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The company operates in two segments: Imaging Centers and Artificial Intelligence. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services.