RadNet announces intent to increase its existing credit facilities by $110 million
Los Angeles, California, January 23, 2008. 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 GE Healthcare Financial Services (“GE HFS”) has agreed to arrange for RadNet an addition to its existing credit facilities of up to $110 million (“Incremental Facility”). The Incremental Facility will consist of $60 million as part of its second lien term loan and $50 million, which will be available for RadNet to draw-down in the future, of either additional term loans or additional capacity under its current revolving line of credit. The additions to RadNet’s existing credit facilities are intended to provide liquidity and working capital for near-term opportunities and future expansion.
Howard Berger, M.D., RadNet’s Chief Executive Officer, stated “The incremental facility will provide us additional liquidity to capitalize on opportunities we believe lie ahead.” Dr. Berger added, “Our industry is a consolidating one, and we see opportunities to expand and acquire. The incremental facility will provide us with the means and financial flexibility to achieve our near-term growth initiatives.”
The financing is intended to be concluded in February 2008.
About RadNet, Inc.
RadNet, Inc. is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of 143 fully-owned and operated outpatient imaging centers. RadNet’s core markets include California, Maryland, New York and Florida. At December 31, 2006, together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, 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, RadNet’s statements regarding cost savings with respect to the financing, 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
Chief Financial Officer
310-445-2800
ms@radnet.com
Integrated Corporate Relations, Inc.
John Mills
310-954-1105
jmills@icrinc.com