Varex Announces Partial Redemption of Senior Secured Notes

Rhea-AI Summary

Varex Imaging Corporation (Nasdaq: VREX) announced a partial redemption of $27 million in its 7.875% senior secured notes due 2027, totaling 10% of the outstanding principal. The redemption price is set at 103% of the principal plus accrued interest, reducing the remaining principal to $243 million. This strategic move is expected to lower ongoing cash interest expenses by $2.1 million, as stated by CFO Sam Maheshwari. Varex continues to focus on cash generation to manage its debt effectively.

Positive

• Reduction of ongoing cash interest expense by $2.1 million.
• Partial redemption signifies strong cash generation capabilities.
• Improvement in debt management with the remaining principal now at $243 million.

Negative

• None.

SALT LAKE CITY--(BUSINESS WIRE)-- Varex Imaging Corporation (Nasdaq: VREX) today announced the partial redemption of $27 million of its 7.875% senior secured notes due 2027, which represents 10% of the outstanding principal amount of the notes. The redemption price of the redeemed notes will be 103.0% of the principal amount thereof, plus accrued and unpaid interest from and including October 15, 2021, to but excluding the redemption date of March 18, 2022. Upon completion of the partial redemption, the remaining outstanding aggregate principal amount of the senior secured notes will be $243 million.

“Our continued cash generation is enabling us to further pay down our senior secured debt, and this partial redemption will reduce our on-going cash interest expense by $2.1 million,” said Sam Maheshwari, Chief Financial Officer of Varex Imaging Corporation.

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 70+ 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 Varex’s X-ray sources, digital detectors, connecting devices and imaging software in their systems to detect, diagnose, protect and inspect. Headquartered in Salt Lake City, Utah, Varex employs approximately 2,100 people located in North America, Europe and Asia. For more information visit vareximaging.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements concerning the announced partial note redemption; and any statements using the terms “believe,” “expect,” “intend,” “future,” “anticipate,” “will,” “could,” 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 global political and economic conditions, events, and hostilities; Varex’s ability to maintain compliance with our financial covenants; the continued impact of tariffs or a global trade war on Varex’s products and customer purchasing patterns; demand for and delays in delivery of products of Varex or its customers; Varex’s ability to develop, commercialize and deploy new products; the impact of reduced or limited demand by purchasers of certain X-ray products; the impact of competitive products and pricing; and the other risks listed from time to time in our filings with the U.S. Securities and Exchange Commission, which by this reference are incorporated herein. Any forward-looking statements made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Varex assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220307005284/en/

Christopher Belfiore

Director of Investor Relations

Varex Imaging Corporation

801.973.1566 | christopher.belfiore@vareximaging.com

Source: Varex Imaging Corporation

FAQ

What is Varex Imaging Corporation's recent financial announcement?

Varex Imaging Corporation announced the partial redemption of $27 million of its senior secured notes, aiming to lower cash interest expenses.

How much of Varex's senior secured notes were redeemed?

Varex redeemed $27 million, which represents 10% of the outstanding principal.

When is the redemption date for Varex's senior secured notes?

The redemption date for the notes is March 18, 2022.

What will be the remaining principal amount of Varex's senior secured notes after redemption?

The remaining outstanding aggregate principal amount will be $243 million.

How will the partial redemption impact Varex's financials?

The partial redemption will reduce ongoing cash interest expenses by $2.1 million.