OSI Systems Expands Credit Facility to $750 Million

Rhea-AI Summary

OSI Systems has announced an amendment to its senior secured credit facility, increasing the borrowing amount from $535 million to $750 million. This includes a $600 million revolving credit facility and a $150 million delayed draw term loan. The maturity has been extended from April 2024 to December 2026. The changes provide enhanced operational and financial flexibility while maintaining favorable pricing. The interest rate for borrowings is at LIBOR + 1.0%.

Positive

• Increased borrowing amount from $535 million to $750 million.
• Extended credit facility maturity to December 2026.
• Maintains favorable pricing with LIBOR + 1.0% interest rate.

Negative

• None.

• Provides enhanced operational and financial flexibility
• Maintains current favorable pricing
• Extends maturity to 2026

HAWTHORNE, Calif.--(BUSINESS WIRE)-- OSI Systems, Inc. (NASDAQ: OSIS) (the “Company” or “OSI Systems”) today announced that it has entered into an amendment to its senior secured credit facility that increases the aggregate amount available to borrow from $535 million to $750 million. The amended facility is comprised of a $600 million revolving credit facility and a $150 million delayed draw term loan. The amendment also increases the flexibility of certain provisions and extends the maturity from April 2024 to December 2026.

Alan Edrick, Executive Vice President and Chief Financial Officer, stated, “We are pleased to successfully complete this refinancing at very attractive pricing to facilitate continued growth while simultaneously providing enhanced options for our convertible notes maturing September 2022. This transaction illustrates the strength of our business and the continued strong support from our lenders.”

The revolver and the term loan are each priced in accordance with the Company’s prior low-cost interest rate grid. As of the amendment date, borrowings under the revolving credit facility bore interest at the rate of LIBOR + 1.0%. The term loan was not funded at closing and is available to the Company to draw through September 1, 2022 and, if drawn, will mature concurrently with the revolving credit facility. The Company may prepay the revolver and the term loan at any time without penalty.

Wells Fargo Securities, LLC, BofA Securities, Inc. and JPMorgan Chase Bank, N.A. served as Joint Lead Arrangers and Joint Bookrunners.

Wells Fargo Bank, National Association, will serve as the Administrative Agent on the amended credit facility.

About OSI Systems

OSI Systems is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, defense, and aerospace industries. The Company combines more than 40 years of electronics engineering and manufacturing experience with offices and production facilities in more than a dozen countries to implement a strategy of expansion into selective end-product markets. For more information on OSI Systems or any of its subsidiary companies, visit OSI Systems. News Filter: OSIS-G

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to OSI Systems’ current expectations, beliefs, and projections concerning matters that are not historical facts. Forward-looking statements are not guarantees of future performance and involve uncertainties, risks, assumptions, and contingencies, many of which are outside OSI Systems’ control and which may cause actual results to differ materially from those described in or implied by any forward-looking statements. Undue reliance should not be placed on forward-looking statements, which are based on currently available information and speak only as of the date on which they are made. OSI Systems assumes no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information, or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under Federal securities laws. For a further discussion of factors that could cause OSI Systems’ future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in OSI Systems’ most recently filed Annual Report on Form 10-K and other risks described therein and in documents subsequently filed by OSI Systems from time to time with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211227005045/en/

OSI Systems, Inc.

Ajay Vashishat

Vice President, Business Development

310-349-2237

avashishat@osi-systems.com

Source: OSI Systems, Inc.

FAQ

What recent financial amendment did OSI Systems announce?

OSI Systems announced an amendment to its credit facility, increasing the borrowing amount from $535 million to $750 million.

What is the new maturity date for OSI Systems' credit facility?

The new maturity date has been extended to December 2026.

What is the interest rate for the new credit facility of OSI Systems?

The interest rate for borrowings under the facility is LIBOR + 1.0%.

How much is the delayed draw term loan in OSI Systems' amended credit facility?

The delayed draw term loan amounts to $150 million.