Radiology Partners, the largest radiology practice in the U.S., is looking to expand further and enhance its clinical services and AI and technological capabilities with a growth equity investment of approximately $720 million it raised through a series of recent financial transactions.

The company collected the funds from existing and new investors and executed an exchange offer in which it offered alternative ways for paying back loans to investors, providing it with greater flexibility to continue making investments and reduce debt, and allowing it to better adjust its financial structure. RP will retain more than $500 million in cash and liquidity to fund continued growth and invest in innovation.

It also extended outstanding debt maturities with new maturity dates ranging from 2028 to 2030 and finalized an amendment to its outstanding credit facilities, an action often taken to renegotiate terms such as interest rates, maturity dates, or other conditions.

“The steps RP is taking today will enable the practice to continue to make these investments, better serve patients, and build on our leadership position as AI plays an increasingly important role in our evolving field,” said Dr. Nina Kottler, RP’s associate chief medical officer for clinical AI, in a statement.

RP revealed in January that it would be engaging in these financial transactions and making the exchange offer with respect to its existing notes. Revolving credit facility lenders agreed to extend maturity from late 2024 to 2028 and amend certain terms. First Lien Term Loan lenders agreed to do the same, extending maturity from 2025 to 2029.

RP is a physician-led business that serves more than 3,300 hospitals and other healthcare facilities in the U.S. through its owned and affiliated practices.

The company has increasingly made more investments in its AI infrastructure in the last few years, most recently with the launch of its RPX AI orchestration platform on Amazon Web Services (AWS). RPX utilizes AWS HealthImaging, a HIPAA-eligible service for storing, analyzing, and sharing medical images at petabyte scale. With AWS HealthImaging, RP says it is better able to deploy a suite of AI tools across any reading platform, making its solution more accessible and adaptable for use among different providers.

It also recently integrated iCAD’s ProFound AI Suite for breast cancer diagnostics at all of the facilities it serves to bring AI-enhanced capabilities to mammography scanning for breast cancer detection and risk assessments.

Moelis & Company LLC and Barclays Capital Inc. served as financial advisors to RP, while Gibson Dunn LLP and Centerview Partners served as legal and financial advisors to certain RP lenders.

Radiology Partners did not respond to HCB News in time for publication.

Business Affairs Homepage