GE Healthcare Financial Services Closes $405 Million Credit Facility with Radnet Management, Inc. for Acquisition of Radiologix
CHICAGO (Nov. 20, 2006) – GE Healthcare Financial Services, as administrative agent and sole lead arranger, provided a $405 million senior secured credit facility to Radnet Management, Inc. to finance the acquisition of Radiologix, Inc. The acquisition creates the largest owner and operator of fixed diagnostic imaging centers in the United States. The financing, which consists of $270 million in first lien facilities and a $135 million second lien loan,funded a portion of the cash purchase of Radiologix, refinanced existing debt and provides liquidity for working capital and other general corporate purposes.
RadNet, a GE customer for more than two decades, most recently tapped GE in March 2006 for a $161 million recapitalization of the company. That strategic transaction helped set the stage for the Radiologix acquisition.
“GE’s in-depth knowledge of both the diagnostic imaging industry and our company helped to create a financing solution that afforded us the financial ability to make an important strategic move in our industry,” said Howard Berger, M.D., CEO of RadNet. “The resulting acquisition will help us cement our role as a leading player in the diagnostic imaging industry.”
David Varhol, Managing Director of GE Healthcare Financial Services’ Corporate Finance group, said “GE is pleased to have completed this financing for RadNet as a continuing evolution of our long-standing relationship with the company. This transaction truly demonstrates GE’s capital markets execution capabilities and proven healthcare industry expertise. It also reinforces the strength of RadNet’s management team and business model in a dynamic diagnostic imaging market.”
About GE Healthcare Financial Services
GE Healthcare Financial Services is a provider of capital, financial solutions, and related services for the global healthcare market. With over $16 billion of capital committed to the healthcare industry, GE Healthcare Financial Services offers a full range of capabilities from equipment financing and real estate financing to working capital lending, vendor programs, and practice acquisition financing. With its knowledge of all aspects of healthcare from hospitals and long-term care facilities to physicians’ practices and life sciences, GE Healthcare Financial Services works with customers to create tailored financial solutions that help them improve their productivity and profitability. For more information, visit www.gehealthcarefinance.com.
About RadNet Management, Inc.
RadNet Management, Inc. is the California market leader in providing high-quality, cost effective diagnostic imaging services through a network of fully-owned and operated outpatient imaging centers. As of October 31, 2006, RadNet owned and operated 65 facilities. For its fiscal year ended October 31, 2006, RadNet and its subsidiaries performed approximately 1,000,000 diagnostic imaging procedures. At October 31, 2006, together with Beverly Radiology Medical Group, the medical group that provides medical services to the majority of the RadNet locations, RadNet had a total of 950 full-time and 375 part-time and per-diem employees. For more information, visit www.radnet.com.
Media Contact:
Deia Campanelli
GE Healthcare Financial Services
312-441-6169
deia.campanelli@ge.com