InSight Health Services has added a new $50 million, three-year delayed-draw term loan that the company intends to use as an acquisition line. The company recently tapped some of the new facility to fund its purchase of 13 diagnostic imaging centers from the Comprehensive Medical Imaging subsidiaries of Cardinal Health. Acquisitions are one of the pillars of the company's three-part growth strategy, noted Kent Tuholsky, InSight treasurer. Internal growth and the development of de novo centers, or new operations, make up the other two pillars, he said. Tuholsky declined to comment on how much of the loan has been used.
Pricing on the new loan originally bore an interest rate of LIBOR plus 33/4%. That piece, however, is tied to a leveraged-based grid, noted Tuholsky. The company's credit facility also includes a $50 million revolver, a $75 million delayed-draw term loan, and a $150 million "B" piece. Pricing is also linked to a leveraged-based grid with the revolver ranging from LIBOR plus 21/2 31/4%. Pricing on the "B" tranche and $75 million delayed-draw term loan moves between LIBOR plus 31/4 31/2%.
The credit facility was completed when equity-sponsors J.W. Childs Equity Partners II and Halifax Capital Partners took the company private in 2001. Bank of America leads the deal. Tuholsky said the bank was chosen by the equity sponsors but InSight had previously worked with NationsBank.