SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Refinancing of SunTrust (Now Truist) Credit Facilities:

On October 7, 2022, our subsidiary, NJIN, entered into a Second Amended and Restated Credit and Term Loan Agreement which provides for a single term loan of $150.0 million and a $50.0 million revolving credit facility. The proceeds of the term loan were used to partially fund the acquisition of Montclair Radiological Associates, refinance the outstanding $42.0 million term loan and pay fees and expenses associated with the refinancing transaction. The key terms of the Restated Credit and Term Loan Agreement are:

•    Interest Rates: Borrowings bear interest at either the SOFR or Base Rate as defined in the agreement, plus an applicable margin.

•    Maturity Dates: The maturity date for both the term loan and revolving loans is October 7, 2027, unless accelerated in accordance with the terms of the agreement.

•    Payments: Beginning March 31, 2023, we will be required to make quarterly principal amortization payments on the term loan in the amount of $1.9 million, which will increase to $3.8 million, with the balance paid at maturity.

Acquisitions:

On October 1, 2022, through our NJIN subsidiary, we acquired Montclair Radiological Associates for purchase consideration of approximately $112.6 million. Montclair consists of six multi modality radiology centers located in New Jersey.

On November 1, 2022, we acquired a 75% controlling share interest in London-based Heart & Lung Imaging Limited ("HLH"). HLH was founded to improve lung cancer outcomes through early detection and accurate diagnosis. HLH will be integrated into our AI operations. Total combined purchase consideration, including contingencies, consists of RadNet common stock and cash up to a potential $27.6 million.