RadNet Secures \$250 Million Incremental Term Loan and Reduces Credit Facility Interest Rates
Key Highlights for Investors
- RadNet, Inc. (NASDAQ: RDNT) has secured a \$250 million incremental term loan to fund strategic growth opportunities.
- The company has reduced interest rates on its term loan and revolving credit facility by 0.25%.
- The term loan, now totaling over \$1.2 billion, will mature on April 18, 2031, aligning with the maturity of the existing \$958.7 million loan.
- Quarterly principal payments on the term loan have increased slightly, from approximately \$2.4 million to \$3.1 million.
- Proceeds will be used for acquisitions, organic growth, partnerships with health systems, and general corporate purposes.
- RadNet’s cash balance stands at \$455 million as of March 31, 2026, further strengthened by the new loan.
- Call protection has been provided to lenders participating in the repricing for six months following the amendment.
- The amendment reflects confidence and ongoing support from Barclays and RadNet’s relationship banks.
Details of the Credit Facility Amendment
On June 10, 2026, RadNet announced the completion of Incremental Amendment No. 3 to its Third Amended and Restated First Lien Credit and Guaranty Agreement. This amendment, referred to as the “Third Amendment,” enables certain term lenders to provide an incremental term loan in the aggregate principal amount of \$250 million, which is now incorporated into the existing term loan structure.
The new 2026 Incremental Term Loan matures on April 18, 2031, coinciding with the maturity date of RadNet’s previous \$958.7 million term loan. The combined term loan now requires quarterly principal payments of \$3.1 million, up from \$2.4 million prior to the amendment.
Interest Rate Reductions
The successful completion of the Third Amendment has resulted in a reduction in the interest rate on the Term Loan by 0.25%. RadNet now has the option to select either Term SOFR plus 2.00% or the alternate base rate plus 1.00%. The interest rate on RadNet’s \$282 million revolving credit facility, which is currently undrawn, has also been reduced by 0.25%.
Strategic Use of Proceeds
The proceeds from the incremental term loan—approximately \$250 million—will be used to finance future acquisitions, support organic expansion initiatives, foster partnerships with health systems, and for general corporate purposes. This financial flexibility positions RadNet to advance its growth strategy and create long-term value for shareholders.
Mark Stolper, Executive Vice President and CFO, commented: “This amendment provides us with additional flexibility to pursue strategic growth opportunities across RadNet’s national imaging center network and technology platforms, while reducing the interest rate on our credit facilities. The proceeds of approximately \$250 million add to the \$455 million cash balance as of March 31, 2026, positioning us to advance our growth strategy and create long-term value for our stockholders.”
Company Overview
RadNet is a leading national provider of freestanding, fixed-site diagnostic imaging services in the U.S., operating a network of outpatient imaging centers across major markets including Arizona, California, Delaware, Florida, Idaho, Indiana, Maryland, New Jersey, New York, Texas, and Virginia. The company also offers radiology information technology and AI solutions under its DeepHealth brand, alongside teleradiology professional services and other related products. RadNet employs over 11,000 team members.
Forward-Looking Statements and Risks
This announcement contains forward-looking statements regarding RadNet’s expected use of loan proceeds and its growth strategy. Investors should note that these statements are subject to uncertainties and risks, including changes in operating results, regulatory changes, economic conditions, interest rate volatility, political instability, catastrophic events, and the potential for future pandemics. Actual results may differ materially from those expressed or implied.
Potential Share Price Impact
The news is potentially price-sensitive for RadNet shareholders. The securing of a substantial incremental loan, coupled with reduced interest rates and increased liquidity, enhances RadNet’s capacity for strategic expansion and partnerships. These measures may result in further growth, improved financial strength, and greater shareholder value, which could positively affect share price.
Contact Information
For further information, contact:
Mark Stolper
Executive Vice President and Chief Financial Officer
Phone: 310-445-2800
Disclaimer: This article is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information is based on the press release dated June 10, 2026, and may contain forward-looking statements subject to risks and uncertainties. Investors are advised to conduct their own due diligence and consult financial advisors before making investment decisions.
