Akumin may turn to debt markets to fund planned growth acquisitions

By Devika Patel

Knoxville, Tenn., March 29 – Akumin Inc. could access the debt markets to fund its acquisition growth plans.

“We believe we will continue to have significant access to debt markets in order to execute on our acquisition growth strategy,” president and chief executive officer Riadh Zine-El-Abidine said on the company’s fourth quarter and year ended Dec. 31, 2018 earnings conference call on Friday.

The company used its revolving credit facility to help fund two acquisitions last quarter.

“The key liability of the company is our five-year syndicated term loan of $100 million at face value,” chief financial officer Mohammad Saleem said on the call.

“In addition, this credit facility includes a $30 million revolving credit facility, of which $11.9 million was drawn as of Dec. 31, 2018 to partially finance the two acquisitions in Florida during Q4 2018.

“On Nov. 12, 2018, Akumin announced the completion of two acquisitions in Florida.

“The purchase cost for these acquisitions was approximately $13.3 million and was partly financed through our syndicated revolving credit facility,” Saleem said.

The company’s cash balance was $19.3 million as of Dec. 31, 2018, compared to $20.4 million as of Sept. 30, 2018.

Total debt was $117.5 million as of Dec. 31, 2018, compared to $103.6 million as of Sept. 30, 2018.

Toronto-based Akumin is a provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.