LOS ANGELES - RadNet, Inc. (NASDAQ: RDNT), a prominent provider of outpatient diagnostic imaging services, has finalized the pricing and allocation for its previously announced debt refinancing plan. The company has successfully priced a new $875 million term loan, which reflects an increase of $35 million from its initial proposition. The seven-year term loan was priced at SOFR plus 2.50% with an original issue discount of 99.25.
In addition to the term loan, RadNet has accepted orders for a $282 million revolving credit facility with a five-year term, marking an increase of $32 million from what was previously announced. This refinancing effort aims to replace the company's existing term loan balance of $679 million due in April 2028 and a $195 million revolving credit facility maturing in April 2026.
Mark Stolper, RadNet's Executive Vice President and Chief Financial Officer, expressed satisfaction with the market's strong interest in the refinancing. The company anticipates that the refinancing will lower borrowing costs, extend debt maturities, provide greater operational flexibility, and add approximately $180 million to its balance sheet. These funds are earmarked for growth opportunities and general corporate purposes.
The completion of the refinancing transaction is contingent upon final documentation agreement, along with standard market and closing conditions. RadNet expects the closing and funding of the refinancing to occur in April 2024.
RadNet operates a network of 366 owned and/or operated outpatient imaging centers across several states and employs over 9,700 people. The company's services are complemented by its information technology solutions, including advancements in artificial intelligence.
The information reported is based on a press release statement from RadNet, Inc.
InvestingPro Insights
As RadNet, Inc. (NASDAQ: RDNT) navigates its financial restructuring with a new term loan and increased revolving credit facility, investors and analysts are closely monitoring the company's performance metrics and market valuation. InvestingPro data indicates a robust market capitalization of $3.58 billion, suggesting a significant presence in the outpatient diagnostic imaging services sector. Moreover, RadNet's revenue growth has been noteworthy, with a 13.05% increase over the last twelve months as of Q4 2023, highlighting the company's ability to expand its operations and potentially capitalize on growth opportunities.
However, investors should be aware of the company's high valuation multiples, with an adjusted P/E ratio of 1230.89 and a Price/Book ratio of 5.67 as of the last twelve months ending Q4 2023. These figures point to a market expectation of future earnings growth, which aligns with one of the key InvestingPro Tips: analysts have revised their earnings upwards for the upcoming period. This optimism is further supported by the projection that net income is expected to grow this year, a sentiment that could be a driving factor behind the company's strategic refinancing decisions.
For those looking to delve deeper into RadNet's financials and forecasts, InvestingPro offers a comprehensive set of additional tips, with a total of 16 tips available for RDNT. These tips provide valuable insights into the company's performance and market expectations, which can be crucial for making informed investment decisions. Interested readers can explore these tips and take advantage of a special offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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