Commences Comprehensive Set of Financing Transactions to Provide the Financial Resources to Drive Next Phase of Growth and Value Creation
(EL SEGUNDO, Calif.) Jan. 19, 2024 – Radiology Partners (RP), the leading radiology practice in the U.S. through its owned and affiliated practices, today announced it is commencing a comprehensive set of financing transactions to strengthen its financial position, increase its financial flexibility and support its continued growth. As part of these actions, RP is commencing an exchange offer with respect to its existing notes and will commence certain amend and extend transactions with respect to its outstanding credit facilities. RP also expects to raise new equity concurrent with the closing of the refinancing transactions.
“As we look to the future and prepare for our next phase of growth, the steps we are initiating today will enable us to build on our position as a leading physician-led radiology practice in the U.S.,” said Rich Whitney, RP’s Board Chair and CEO. “This comprehensive set of financing transactions will provide us the financial resources and flexibility to continue aggressively investing in our practice, expanding our services to additional clients and geographies and extending our technology platform and AI capabilities for the benefit of our patients, hospital partners and physicians.”
“This is a significant, positive announcement for Radiology Partners,” said Rod Owen, MD, RP radiologist and Board Director. “We are appreciative of the long-term support of our lenders and equity partners, which has been a key ingredient to our success. This set of transactions will position us to accelerate progress on our mission to transform radiology and broaden our positive impact on patients and the healthcare system.”
Refinancing Transactions:
- Revolving credit facility lenders have agreed to extend the maturity from late 2024 to 2028 and amend certain terms thereof.
- First Lien Term Loan lenders have agreed to extend the maturity from 2025 to 2029 and amend certain terms thereof.
- RP is offering to exchange its senior secured notes due in 2025 for new first lien notes due in 2029 and its senior unsecured notes due in 2028 for new second lien notes due in 2030.
Kirkland & Ellis LLP and Sidley Austin LLP are acting as legal counsel to Radiology Partners, and Moelis & Company LLC is serving as financial advisors to Radiology Partners. Gibson Dunn LLP and Centerview Partners are acting as legal and financial advisors to certain RP lenders.
About Radiology Partners
Radiology Partners, through its owned and affiliated practices, is a leading radiology practice in the U.S., serving more than 3,300 hospitals and other healthcare facilities across the nation. As a physician-led and physician-owned practice, our mission is to transform radiology by innovating across clinical value, technology, service and economics, while elevating the role of radiology and radiologists in healthcare. Using a proven healthcare services model, Radiology Partners provides consistent, high-quality care to patients, while delivering enhanced value to the hospitals, clinics, imaging centers and referring physicians we serve. Learn more at radpartners.com and connect with us at @Rad_Partners.
Additional Information
This press release does not constitute a notice relating to the commencement of the exchange offer. Holders of RP’s existing notes will separately be informed of the exchange offer. Documents relating to the exchange offer will only be distributed to certain eligible holders of RP’s existing notes. This press release is for informational purposes only and shall not constitute an offer to sell or exchange nor the solicitation of an offer to buy the new notes or any other securities. The exchange offer will not be made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful. Any offer of the new notes will be made only by means of a separate confidential offering memorandum.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including, but not limited to, our ability to consummate the contemplated equity and financing transactions and the future performance of our business. All statements other than statements of historical facts included in this press release that address activities, events, conditions, or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements may include the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “strategy,” “future,” “opportunity,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and we are not under any obligation, and expressly disclaim any obligation to update, alter, or otherwise revise any forward-looking statement, except as required by law.
Media Contacts
Sheila Biggs
sbiggs@jarrardinc.com
