RadNet closes debt refinancing plan

RadNet, Inc. (Nasdaq:RDNT), (the "Company"), a national leader in providing high-quality, fixed-site outpatient diagnostic imaging services through a network of 180 imaging centers, today announced the closing of its debt refinancing plan for an aggregate of $585 million. The debt refinancing plan included the issuance of a $285 million senior secured term loan due April 6, 2016, a $100 million senior secured revolving credit facility due April 6, 2015 and $200 million in aggregate principal amount of senior unsecured notes due April 1, 2018 (the "Notes").

The $285 million senior secured term loan and the $100 million senior secured revolving credit facility are floating rate facilities, and we may request the interest rate be based upon LIBOR (subject to a 2% LIBOR floor) plus an applicable LIBOR margin of 3.75%. The $100 million senior secured revolving credit facility will be undrawn at close. The $200 million in aggregate amount of senior unsecured notes have a coupon of 10.375% and were issued at a price of 98.680%.

In connection with the debt refinancing plan, the Company's wholly-owned subsidiary Radnet Management, Inc., (the "Borrower"), terminated its existing senior secured term loan B, second lien term loan and revolving credit facilities. The obligations under the new credit facilities are guaranteed by the Company, all of the Borrower's current and future wholly-owned domestic subsidiaries and certain of its affiliates.

In addition to refinancing the existing senior secured credit facilities, the net proceeds of the debt refinancing plan will be used to fund the Company's previously announced acquisitions of Truxtun Medical Group in Bakersfield, California and the New Jersey operating subsidiary of Health Diagnostics currently under letters of intent, fund cash to the Company's balance sheet and pay related fees and expenses.

The Notes were issued by Radnet Management, Inc. and guaranteed jointly and severally on a senior unsecured basis by all of its current and future wholly-owned domestic restricted subsidiaries and the Company.

The Notes were offered and sold in a private placement exempt from registration under the Securities Act to qualified institutional buyers pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act").