I-MED Network Radiology Ltd, Australia’s largest private medical imaging company with 220 doctors, will on Monday refinance $249.9 million of senior debt that currently sits with its private equity owners to a group of banks.
Australia and New Zealand Banking Group Ltd, Commonwealth Bank of Australia Ltd and Morgan Stanley are the lead arrangers and underwriters of the refinance. Each bank has received credit approvals to underwrite $83.3 million of I-Med’s debt.
The pricing and tenor of the refinancing will be finalised on Monday.
“Refinancing our existing debt sets I-MED up for future growth, and will allow us to make investments in both new and upgraded equipment as well as grow our clinic footprint,” I-MED chief executive Steven Rubic told DataRoom.
The banks were encouraged by an improvement in I-Med’s finances, following a turnaround and restructuring after the company’s distressed sale in 2011.
I-MED’s revenue in the 12 months to June 30 this year was $514 million, a 4.9 per cent increase from the previous year. Earnings before interest, tax, depreciation and amortization (EBITDA) in 2013 was $80 million, a 37 per cent increase.
The company’s net debt is less than 2.5 times EBITDA and it forecasts 5 per cent revenue growth in its 2014 financial year.
I-MED’s owners include ADM Capital, Allegro Funds Ltd, Anchorage Capital Group, Och-Ziff Capital Management Group LLC and Octavian Advisors LP,