RadNet Announces Change to Intended Financing
Los Angeles, California, August 10, 2007. RadNet, Inc. (“RadNet”) (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective diagnostic imaging services through a network of fully-owned and operated outpatient imaging centers, announced that conditions in the debt markets have necessitated that RadNet defer its previously contemplated $445 million debt refinancing. Instead, GE Healthcare Financial Services (“GE HFS”) has agreed to arrange for RadNet an incremental $35 million (“Incremental Facility”) as part of its existing credit facilities. The Incremental Facility will consist of an additional $25 million as part of its first lien Term Loan B and $10 million of additional capacity under RadNet’s existing revolving line of credit. The Incremental Facility will be used to fund certain identified strategic initiatives and for general corporate purposes.
Mark Stolper, RadNet’s Chief Financial Officer, stated “The incremental term loan and revolver capacity will provide us additional liquidity to capitalize on opportunities we believe lie ahead.” Stolper added, “The continuing deterioration of the credit markets over the last few weeks, caused by troubles in the sub-prime lending market and other factors, dictate that we are unable to achieve our original refinancing objectives at this time. In the last 30 days, many debt financings were cancelled and many of those that were completed, were completed under terms and conditions much less attractive than desired.”
Stolper added, “Our original refinancing transaction was an elective one, and was intended to provide us with better pricing than that of our existing credit facilities. We continue to believe we will be able to refinance our current facilities on more attractive terms in the future when the credit markets improve. However, we are very pleased that this incremental capital will provide us with the ability to accomplish our growth plans in the near term.”
About RadNet, Inc.
RadNet, Inc. is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of 138 fully-owned and operated outpatient imaging centers. RadNet’s core markets include California, Maryland and New York. At December 31, 2006, together with Beverly Radiology Medical Group, and inclusive of full-time and per diem employees, technicians and radiologists, RadNet had a total of 3,937 employees. For more information, visit http://www.radnet.com.
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 http://www.gehealthcarefinance.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning the successful conclusion of the proposed financing, growth plans, are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management’s current, preliminary expectations and are subject to risk and uncertainties, which may cause RadNet’s actual results to differ materially from the statements contained herein. Further information on potential risk factors that could affect RadNet’s business and its financial results are detailed in its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. RadNet undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.
RadNet, Inc.
Mark Stolper
310-445-2800
Chief Financial Officer
ms@radnet.com
Integrated Corporate Relations, Inc.
John Mills
310-954-1105
jmills@icrinc.com