Varex Announces Closing of Private Offering of $125 Million of Senior Secured Notes
Varex Imaging (VREX) has successfully closed a private offering of $125 million in 7.875% senior secured notes due 2027. The notes were priced at 101.5% of principal amount, with accrued interest from October 15, 2024. According to CFO Sam Maheshwari, the funds will be used for partial repayment of convertible notes maturing in June 2025 while maintaining revolving credit facility availability. The notes were offered to qualified institutional buyers under Rule 144A and international investors under Regulation S of the Securities Act, and are not registered under the Securities Act or state securities laws.
Varex Imaging (VREX) ha concluso con successo un'offerta privata di 125 milioni di dollari in note senior garantite al 7,875% con scadenza nel 2027. Le note sono state prezzate al 101,5% dell'importo nominale, con interessi maturati a partire dal 15 ottobre 2024. Secondo il CFO Sam Maheshwari, i fondi saranno utilizzati per il parziale rimborso di note convertibili in scadenza a giugno 2025, mantenendo allo stesso tempo la disponibilità di un'operazione di credito revolving. Le note sono state offerte a compratori istituzionali qualificati ai sensi della Regola 144A e a investitori internazionali ai sensi del Regolamento S della Securities Act, e non sono registrate ai sensi della Securities Act o delle leggi statali sui titoli.
Varex Imaging (VREX) ha cerrado con éxito una oferta privada de 125 millones de dólares en notas senior garantizadas del 7,875% con vencimiento en 2027. Las notas se fijaron en el 101,5% del monto principal, con intereses acumulados a partir del 15 de octubre de 2024. Según el CFO Sam Maheshwari, los fondos se utilizarán para el reembolso parcial de notas convertibles que vencen en junio de 2025, manteniendo al mismo tiempo la disponibilidad de una línea de crédito rotativa. Las notas se ofrecieron a compradores institucionales calificados bajo la Regla 144A y a inversores internacionales bajo el Reglamento S de la Ley de Valores, y no están registradas bajo la Ley de Valores ni las leyes estatales de valores.
Varex Imaging (VREX)는 2027년 만기 7.875% senior secured notes에 대해 1억 2500만 달러의 사모 거래를 성공적으로 마쳤습니다. 이 노트는 원금의 101.5%로 가격이 책정되었으며, 2024년 10월 15일부터 누적 이자가 발생합니다. CFO Sam Maheshwari에 따르면, 자금은 2025년 6월 만기되는 전환 노트의 부분 상환에 사용될 예정이며, 회전 신용한도 가용성을 유지합니다. 이 노트는 Rule 144A에 따라 적격 기관 구매자에게 제공되었고, Securities Act의 Regulation S에 따라 국제 투자자에게도 제공되었으며, Securities Act 또는 주 국가의 증권법에 따라 등록되지 않았습니다.
Varex Imaging (VREX) a réussi à clôturer une offre privée de 125 millions de dollars sous forme de billets senior garantis à 7,875% arrivant à échéance en 2027. Les billets ont été fixés à 101,5% de la valeur nominale, avec des intérêts accumulés à partir du 15 octobre 2024. Selon le CFO Sam Maheshwari, les fonds seront utilisés pour le remboursement partiel de billets convertibles arrivant à échéance en juin 2025, tout en maintenant la disponibilité d'une facilité de crédit renouvelable. Les billets ont été proposés à des acheteurs institutionnels qualifiés en vertu de la Règle 144A et à des investisseurs internationaux en vertu du Règlement S de la Loi sur les valeurs mobilières, et ne sont pas enregistrés sous la Loi sur les valeurs mobilières ni sous les lois d'État sur les valeurs mobilières.
Varex Imaging (VREX) hat erfolgreich eine private Platzierung von 125 Millionen Dollar in 7,875% Senior Secured Notes mit Fälligkeit 2027 abgeschlossen. Die Notes wurden zu 101,5% des Nennbetrags bepreist, mit aufgelaufenen Zinsen ab dem 15. Oktober 2024. Laut CFO Sam Maheshwari werden die Mittel teilweise zur Rückzahlung von wandelbaren Anleihen verwendet, die im Juni 2025 fällig werden, während die Verfügbarkeit eines revolvierenden Kreditrahmens aufrechterhalten wird. Die Notes wurden qualifizierten institutionellen Käufern gemäß Regel 144A und internationalen Investoren gemäß Regulation S des Securities Act angeboten und sind nicht unter dem Securities Act oder den Gesetzen der einzelnen Bundesstaaten über Wertpapiere registriert.
- Successful raising of $125 million through senior secured notes
- Strategic debt management by addressing upcoming convertible notes maturity
- Preservation of revolving credit facility availability
- High interest rate of 7.875% on new notes
- Premium pricing at 101.5% of principal amount
- Additional debt burden on balance sheet
Insights
The
The timing is particularly strategic as it addresses the June 2025 convertible notes maturity well in advance, demonstrating prudent liability management. However, the higher coupon rate compared to typical investment-grade bonds suggests some market concerns about credit quality. The preservation of the revolving credit facility provides an additional liquidity buffer, which is important for operational flexibility in the medical imaging technology sector where working capital needs can be substantial.
This debt issuance reveals important insights about Varex's credit profile and market positioning. The
The decision to partially refinance convertible notes with secured debt suggests a strategic shift in the company's capital structure, potentially limiting future financial flexibility. However, maintaining revolving credit facility availability provides a important liquidity cushion. The
“We are pleased to have successfully closed the offering of additional senior secured notes,” said Sam Maheshwari, Chief Financial Officer of Varex Imaging Corporation. “The additional funds allow us to address the partial repayment of our convertible notes coming due in June 2025, while preserving availability under our revolving credit facility,” added Maheshwari.
Additional information concerning the notes is disclosed in Varex’s Form 8-K filed today, December 23, 2024.
No Offer or Solicitation
Nothing contained herein shall constitute an offer to sell or the solicitation of an offer to buy any security. The notes were offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside
About Varex
Varex Imaging Corporation is a leading innovator, designer and manufacturer of X-ray imaging components, which include X-ray tubes, digital detectors and other image processing solutions that are key components of X-ray imaging systems. With a 75 year history of successful innovation, Varex’s products are used in medical imaging as well as in industrial and security imaging applications. Global OEM manufacturers incorporate the company’s X-ray sources, digital detectors, connecting devices and imaging software in their systems to detect, diagnose, protect and inspect. Headquartered in
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning the use of proceeds raised in the offering to partially repay existing convertible notes due in June 2025, preserving availability under our revolving credit agreement. Any statements using the terms “intend,” “subject to,” “plan,” “will,” “may”, or similar statements are forward-looking statements that involve risks and uncertainties that could cause Varex’s actual results to differ materially from those anticipated. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. Such risks and uncertainties include changes to our plans; reduction in or loss of business of one or more of our limited OEM customers; loss of business to, and an inability to effectively compete with competitors; market erosion or loss of customers due to pricing pressures and other factors; failure to meet customers’ needs and demands; economic instability, shifting political environments, changing tax treatment, reactionary import/export regulatory regimes, and other risks associated with doing business internationally; supply chain disruptions; inability to maintain or defend intellectual property rights, and the high cost of protecting such rights and defending against infringement claims; disruption of critical information systems or material security breaches of such systems; non-compliance with product-related regulations and delays in obtaining regulatory clearances or approvals; limitations imposed by operating and financial restrictions of our debt financing agreements; and the other risks listed from time to time in our filings with the
Information regarding the factors that could cause results to differ can be found in the company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2024, as well as the company’s other filings with the Securities and Exchange Commission. These forward-looking statements are based on information as of the date of this release. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241223343126/en/
For Information Contact:
Christopher Belfiore
Director of Investor Relations
Varex Imaging Corporation
801.973.1566 | investors@vareximaging.com
Source: Varex Imaging Corporation
FAQ
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