RadNet, Inc. announced the completion of pricing and allocations for Amendment No. 1 to its Credit and Guaranty Agreement. This amendment will reduce the interest rates payable on its outstanding term loans and revolving credit facility by 0.25%. RadNet has $872,812,500 of outstanding term loans under the Credit Agreement.
The interest rate on the term loans will be reduced 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 see a 0.25% reduction, subject to a pricing grid based on RadNet’s leverage ratio. All other terms and maturity dates remain unchanged.
RadNet estimates that this First Amendment will result in approximately $2.2 million of annual cash interest expense reduction. This financial maneuver enhances the company's liquidity and strengthens its balance sheet. The closing under the First Amendment is expected to occur in the following week.
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