RadNet Completes Growth Financing Transaction, Increasing Its Existing Credit Facilities
Los Angeles, California, February 25, 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 has arranged for RadNet an increase to its existing credit facilities, including $35 million which was drawn-down at close and the ability to further increase the facilities by an incremental $65 million (the “Incremental Facility”). The additions to RadNet’s existing credit facilities are intended to provide capital for near-term opportunities and future expansion.
Howard Berger, M.D., RadNet’s Chief Executive Officer, stated “We are very pleased to have completed this financing transaction in one of the most challenging credit markets in recent history. I believe that the completion of this financing evidences confidence by our credit investors in our future ability to continue to grow our business in a disciplined and effective manner.”
Dr. Berger added, “While we retain floating-rate interest exposure and future rate movements are unknown, the steady drop in interest rates over the last year in the financial markets has benefitted us in that it has permitted our overall blended interest cost upon the closing of this financing to remain similar to the rates initially paid by us in November 2006.”
“The incremental facility will provide us liquidity to capitalize on near-term opportunities that lie ahead. We currently see more opportunities in our industry for consolidation and growth than ever before. The incremental facility provides us the financial flexibility and capital availability to accomplish growth and expansion consistent with our strategic goals.”
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. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 4,000 employees. For more information, visithttp://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 $17 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 use of the proposed 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 uses 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