Akumin Inc. Closes 5-Year US$130 million New Credit Facilities
News Provided by Akumin Inc. / Aug 15, 2018. 8:58am ET
August 15, 2018 – Toronto, ON – Akumin Inc. (TSX: AKU.U) (“Akumin” or the “Corporation”) announced today its subsidiary, Akumin Corp., has closed credit facilities for a principal amount of US$130 million with a syndicate of lenders, consisting of a term loan facility for $100 million and a revolving credit facility for US$30 million. The credit facilities have a maturity date of August 15, 2023. The proceeds of the term loan were used to repay Akumin’s existing credit facilities of approximately US$74.6 million and to pay the purchase price for its acquisition today of 11 diagnostic centers operated by Rose Radiology Centers, Inc. of approximately US$25 million, as well as for related transaction costs. Subject to the terms of the credit agreement, the revolving credit facility may be used for permitted acquisitions and other general corporate purposes.
“We are very excited about this new credit agreement. This is an important milestone in the history of our company, as it diversifies our sources of capital and enhances our future access to the debt markets,” said Riadh Zine, President and Chief Executive Officer of Akumin. “We believe increasing our credit facilities to a total of $130 million from $80 million and increasing the number of participants in our syndicate to five from two lenders is a testament to the solid foundation that Akumin has built in its sector. These credit facilities have similar pricing and more flexible covenants than our existing facilities. They also financed the purchase price of the acquisition of Rose Radiology Centers Inc. and provide us with the tools to continue our growth and achieve our long-term strategic objectives.”
Subject to certain limited exceptions, the credit facilities are guaranteed by the Corporation and each of its subsidiaries (other than Akumin Corp.) and are secured against substantially all of the assets of the Corporation, Akumin Corp. and those subsidiaries. The credit facilities may be incrementally increased by an aggregate principal amount of up to US$40,000,000 subject to lender commitment and certain other conditions.
BBVA Compass acted as lead arranger and sole bookrunner and is the administrative agent under the credit facilities. Bank of Nova Scotia acted as syndication agent and National Bank of Canada acted as documentation agent. The lending syndicate is comprised of BBVA Compass, Bank of Nova Scotia, National Bank of Canada, BankUnited and Siemens Financial Services, Inc.
Akumin is a leading provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States with a network of 89 owned and/or operated imaging centers located in Florida, Texas, Pennsylvania, Delaware, Illinois and Kansas. By combining our clinical expertise with the latest advances in technology and information systems, our centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, minimizing the cost and amount of care for patients. Our imaging procedures include MRI, CT, positron emission tomography (PET), ultrasound, diagnostic radiology (X-ray), mammography, and other interventional procedures.
Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Akumin as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the “Risk Factors” section of our Annual Information Form available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Akumin; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Akumin expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Akumin Inc.
For further information: Riadh Zine, President and Chief Executive Officer, 416-613-1391