Virtual Radiologic to launch $296 million credit facility on Thursday

By Sara Rosenberg

New York, May 4 - Virtual Radiologic is set to hold a bank meeting on Thursday to launch a proposed $296 million credit facility, according to a market source.

GE Capital Markets is the lead bank on the deal.

The facility consists of a $40 million revolver and a $256 million term loan, with both tranches talked at Libor plus 500 basis points with a 1.5% Libor floor and an original issue discount of 99, the source said.

Proceeds will be used for a dividend recapitalization.

In December, the company completed a $253 million senior secured credit facility for its acquisition of NightHawk Radiology Holdings Inc. that consisted of a $40 million revolver and a $213 million term loan B priced at Libor plus 550 bps with a 1.75% Libor floor and sold at a discount of 981/2.

Virtual Radiologic is an Eden Prairie, Minn.-based radiology practice and developer of radiologist workflow technology.

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