TORONTO, June 3, 2019 /CNW/ - Akumin Inc. (TSX:
AKU.U, AKU) ("Akumin" or the "Corporation") announced
today it closed, effective May 31,
2019, the previously announced refinancing of its credit
facilities. The new credit facilities are for an aggregate
principal amount of US$382 million and include a Term Loan A
facility of US$66 million, a Term Loan B facility of
US$266 million and a revolving credit facility of
US$50 million. US$16 million of the Term Loan A
facility is subject to a delayed draw and is available to Akumin
for use in potential acquisitions until August 29, 2019. The remainder of the term
loans were advanced on May 31, 2019
and the proceeds were used to refinance Akumin's existing credit
facilities and finance acquisitions. The revolving credit
facility may be used for acquisitions, investments and other
general corporate purposes. Also on May 31, 2019, Akumin acquired a single diagnostic
imaging center in Deltona, Florida
through a subsidiary.
Contemporaneously with the closing of its refinancing, Akumin
closed its previously announced transactions to acquire Advanced
Diagnostics Group ("ADG"), The Imaging Centers of West Palm
and management of Elite Radiology of Georgia. As a result of
the closing, Akumin indirectly holds all of the issued and
outstanding equity interests of ADG Acquisition Holdings, Inc., TIC
Acquisition Holdings, LLC and SFL Radiology Holdings, LLC
(collectively, the "Targets"). The total purchase
price for the Targets was approximately US$214 million of
which US$25 million was satisfied by the issuance of Akumin
shares at a price of US$4.00 per
share. Part of the purchase price for SFL Radiology Holdings,
LLC, the exclusive manager of Elite Radiology of Georgia, LLC, is subject to an earnout based
on annualized revenues earned in the first two quarters of 2020
less certain costs and expenses.
"The successful closing of this US$382
million financing is proof of the foundation we built as a
company to successfully execute on a market consolidation
strategy," said Riadh Zine, Akumin's
President and Chief Executive Officer. "We are very
appreciative of the support provided and the capital deployed by
all the relationship banks and US debt institutions. The trust that
our debt capital providers have placed in our team makes us more
focused to realize the vision we have always had for Akumin."
About the Credit Facilities
The Term Loan A, Term Loan B and revolving credit facilities all
have a term of 5 years, maturing on May
31, 2024. The Term Loan A and revolving credit
facilities bear interest at an index based on either LIBOR or a
base rate, in each case plus a margin based on Akumin's
consolidated total leverage ratio. The margin at closing was
set at 4.50% for Eurodollar rate loans or 3.50% for base rate
loans. The Term Loan B facility bears interest at LIBOR plus 6.00%
for Eurodollar rate loans or the base rate plus 5.00 % for base
rate loans.
The credit facilities were led by BBVA Compass, as
administrative agent, and BBVA Securities Inc., as lead arranger
and sole bookrunner. The syndicate includes HIG Whitehorse,
TCW Asset Management Company LLC, Comvest Capital IV, L.P., The
Bank of Nova Scotia, BankUnited,
National Bank of Canada, BC
Partners and A-Cap Investments.
The credit facilities may be incrementally increased by up to
US$100 million subject to lender commitment and certain other
conditions. The credit facilities are secured against
substantially all of Akumin's and its subsidiaries' assets.
About the Targets
Advanced Diagnostic Group operates 14 outpatient diagnostic
imaging centers across Florida,
each as an independent diagnostic testing facility, with a
particular focus on personal injury imaging. In 2018, ADG's
management team took over management of The Imaging Centers of West
Palm, which operates 7 outpatient diagnostic imaging centers in
South Florida.
SFL Radiology Holdings, LLC has the exclusive right to manage
the non-clinical and administrative affairs of Elite Radiology of
Georgia, LLC, a physician-owned
practice which operates six outpatient diagnostic imaging centers
in the Atlanta, Georgia area.
About Akumin
Akumin is a leading provider of freestanding, fixed-site
outpatient diagnostic imaging services in the United States with a network of owned
and/or operated imaging centers located in Florida, Texas, Pennsylvania, Delaware, Georgia, 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.
Forward-Looking Information
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 dated
March 28, 2019, which is 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.