Imaging center chain Radiologix has signed a recapitalization agreement with an affiliate of New York City-based investment banking firm Saunders Karp & Megrue (SKM). Under terms of the agreement, the SKM affiliate will purchase up to 90% of Radiologix’s common stock. The recapitalization values Radiologix at approximately $377 million, including the assumption of approximately $212.5 million in debt.
Stockholders will have the alternative of cashing in their shares or rolling them over into continuing interest in the recapitalized company. Immediately following the transaction, existing shareholders will hold between 10% to 20% of the firm’s equity, according to Dallas-based Radiologix.
Radiologix expects the deal, which is subject to customary shareholder approval, regulatory review, and the receipt of financing, to close before the end of the year.
By AuntMinnie.com staff writers
August 24, 2000
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