RadNet (NASDAQ:RDNT), a premier provider of outpatient diagnostic imaging services, today revealed plans for a significant refinancing transaction aimed at optimizing its financial structure.

The move involves refinancing its current term loan and revolving credit facility to better support the company's expansive growth strategies and improve financial flexibility.

As of December 31, 2023, RadNet's financial obligations targeted for refinancing include a term loan balance of $679 million, set to mature in April 2028, and an undrawn revolving credit facility of $195 million, due in April 2026.

The proposed refinancing strategy consists of securing a new $840 million term loan with a seven-year maturity and a $250 million revolving credit facility with a five-year term.

The additional funding is intended not only to repay the existing term loan but also to allocate approximately $148 million in cash to RadNet's balance sheet.

This injection is earmarked for capturing growth opportunities and covering general corporate needs.