Alliance Imaging obtains revolving credit facility.ORANGE, Calif.--(BUSINESS WIRE)--Jan. 10, 1996--Alliance Imaging Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SCAN), the nation's largest provider of hospital-based fixed-site and mobile magnetic resonance imaging magnetic resonance imaging (MRI), noninvasive diagnostic technique that uses nuclear magnetic resonance to produce cross-sectional images of organs and other internal body structures. (MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. ) and computed tomography Computed tomography (CT scan) X rays are aimed at slices of the body (by rotating equipment) and results are assembled with a computer to give a three-dimensional picture of a structure. (CT) services, Wednesday announced that it has obtained a new $3 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility from San Jose-based Comerica Bank-California. According to the announcement by Chairman President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Richard Zehner, the company intends to use the new accounts receivable-based Comerica Bank credit line as a standby facility to provide additional working capital flexibility. Zehner commented, "We are very pleased to be working with Comerica Bank. While our current cash balance of over $11 million and our strong cash flow are sufficient to meet our operational and capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. going forward, the availability of additional working capital funds will enable us to use existing cash resources for potential future acquisitions and will be helpful in implementing our expansion strategy." Alliance is actively seeking acquisitions of companies that will expand the company's market share, increase revenue and profitability and create economies of scale. "A consolidation is currently underway in our industry, and there are a number of profitable regional MRI service providers that are excellent acquisition candidates, offering Alliance a significant source of potential growth and increased geographic coverage," Zehner said. The Comerica revolving credit facility, which closed in late December, provides up to $3 million, subject to the terms of the loan agreement, at an interest rate of 2 percentage points over Comerica's Base Rate, and is secured by the company's accounts receivable. Alliance Imaging is a leading provider of comprehensive diagnostic imaging services to hospitals and other healthcare providers. Services are provided on either a mobile, shared-user basis or on a full-time single-user basis. The company currently operates 77 magnetic resonance imaging (MRI) units and 10 computed tomography (CT) units nationwide. CONTACT: Alliance Imaging Terrence M. White, 714/921-5656 or South Coast Communications Group Marty Tullio (investors), 714/252-8440 Owen Daley (media), 714/252-8440 |
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