US Radiology launches $925 million of loans at Libor plus 475-500 bps

By Sara Rosenberg

New York, Dec. 1 – US Radiology Specialists Inc. launched on Tuesday its $790 million seven-year first-lien term loan and $135 million delayed-draw first-lien term loan with price talk of Libor plus 475 basis points to 500 bps with a 0.75% Libor floor and an original issue discount of 98.5, according to a market source.

Included in the term loan debt is 101 soft call protection for six months.

The delayed-draw term loan is available for 18 months subject to a $20 million minimum draw amount and can be used to finance permitted acquisitions and investments and to pay related fees and expenses, subject to a 5.25x secured net leverage ratio, the source said.

Ticking fees on the delayed-draw term loan are half the margin from days 46 to 90, the full margin from days 91 to 120 and adjusted Libor plus 100% of the interest rate margin thereafter.

Barclays, Capital One, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Fifth Third are the bookrunners on the $925 million of term loans. Barclays is the administrative agent.

Commitments are due at 5 p.m. ET on Dec. 10, the source added.

Proceeds will be used to refinance the company’s existing capital structure and fund three acquisitions.

US Radiology is a Raleigh, N.C.-based radiology group.

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