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LOS ANGELES, April 3, 2013 (GLOBE NEWSWIRE) -- RadNet, Inc. (Nasdaq:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 246 owned and operated outpatient imaging centers, today announced that it completed the previously announced process to re-price its existing senior secured term loan under which, as of the closing of this transaction, RadNet had approximately $348.3 million aggregate principal amount outstanding.
Additionally, as part of this transaction, RadNet raised an additional $40 million under the same senior secured term loan facility ("Incremental Term Loan"). Proceeds from the Incremental Term Loan were used to repay certain amounts outstanding under RadNet's revolving credit facility and to fund fees and expenses.
Under the terms of the re-pricing, the spread above LIBOR of RadNet's senior secured term loan has decreased by 1.0%, from 4.25% to 3.25%. Additionally, prior to the re-pricing transaction, the LIBOR rate underlying the senior secured term loan was subject to a floor of 1.25%. Under the terms of the re-pricing, the LIBOR floor has been reduced by 0.25%, to 1.00%.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, noted, "We are appreciative of the support we received from our existing lending group and from several new lenders. This transaction accomplishes two important things for RadNet. First, we project annual interest expense savings of approximately $5.0 million resulting from the lower pricing on our $348.3 million senior secured term loan and from replacing a substantial amount of our outstanding revolver balance with the lower cost senior secured term loan. This decrease in interest expense will have a corresponding positive impact on our earnings and free cash flow."
Dr. Berger added, "Second, the Incremental Term Loan allowed us to make a substantial repayment of our revolving credit facility balance, affording us substantially more liquidity under our $101 million revolving credit facility. This additional liquidity may be used for the continued growth and expansion of our business, including executing future strategic acquisitions."