JP Morgan flexed pricing on a $110 million, seven-year term loan "B" for Diagnostic Imaging last week to LIBOR plus 3 1/2% from LIBOR plus 3%. The loan will back Evercore Capital Partners' acquisition of a 64% stake in the company. Neeraj Mital, a partner at Evercore, said the pricing change was a reflection of market conditions and had nothing to do with the company.
The loan also consists of a five-year, $25 million revolver. Pricing is LIBOR plus 3% on the revolver. Evercore is putting in $84 million of equity and existing shareholders are rolling over $46.4 million of equity. It had intended to roll over $34.7 million of equity, but the seller wanted to keep more pre-tax equity in the buisness for potential add-ons (LMW, 4/25). Some buysiders had passed on the deal due to the size of the company and the collateral. Moody's Investors Service assigned a B2 rating to the facility reflecting the significant amount of financial leverage being considered in the transaction."
Based in Hicksville, N.Y., the company provides management services to diagnostic imaging centers in New York and Florida. It generated $119 million in revenues last year and had an EBITDA of $37.2 million for the last 12 months.