Varex Announces Pricing of Private Offering of $125 Million of Senior Secured Notes
Varex Imaging (VREX) has priced a private offering of $125 million in 7.875% senior secured notes due October 15, 2027, at 101.5% of principal value. These notes are additional to the existing $243 million outstanding from the initial $300 million issuance in September 2020.
The company plans to use the proceeds to partially repay or repurchase Convertible Notes due June 2025. The offering is expected to close on December 20, 2024. Following the offering, Varex will terminate its $20 million Equipment Credit Agreement. The notes will be guaranteed by domestic and select foreign subsidiaries, secured by first-priority interest in equipment, capital stock, intellectual property, and certain real property.
Varex Imaging (VREX) ha stabilito un'offerta privata di 125 milioni di dollari in note senior garantite al 7.875% con scadenza il 15 ottobre 2027, al 101.5% del valore nominale. Queste note si aggiungono ai 243 milioni di dollari già in circolazione provenienti dall'emissione iniziale di 300 milioni di dollari effettuata a settembre 2020.
L'azienda prevede di utilizzare i proventi per ripagare parzialmente o riacquistare le Note Convertibili scadenti a giugno 2025. Si prevede che l'offerta si chiuda il 20 dicembre 2024. Dopo l'offerta, Varex terminerà il suo Accordo di Credito per Attrezzature da 20 milioni di dollari. Le note saranno garantite da sussidiarie nazionali e selezionate estere, garantite da un interesse di primo grado in attrezzature, capitale azionario, proprietà intellettuale e alcuni immobili.
Varex Imaging (VREX) ha establecido una oferta privada de 125 millones de dólares en notas senior garantizadas a 7.875% con vencimiento el 15 de octubre de 2027, al 101.5% del valor nominal. Estas notas son adicionales a los 243 millones de dólares ya existentes de la emisión inicial de 300 millones de dólares realizada en septiembre de 2020.
La compañía planea usar los ingresos para reembolsar parcialmente o recomprar Notas Convertibles que vencen en junio de 2025. Se espera que la oferta cierre el 20 de diciembre de 2024. Tras la oferta, Varex cancelará su Acuerdo de Crédito por Equipos de 20 millones de dólares. Las notas estarán garantizadas por subsidiarias nacionales y algunas extranjeras, aseguradas por un interés de primer grado en equipos, capital social, propiedad intelectual y ciertos bienes raíces.
Varex Imaging (VREX)는 1억 2500만 달러, 7.875%의 2027년 10월 15일 만기인 고급 담보 노트를 101.5%의 원금 가치로 사모 발행했습니다. 이 노트는 2020년 9월에 발행된 3억 달러의 초기 발행에서 남아 있는 2억 4300만 달러에 추가됩니다.
회사는 이 수익금을 사용하여 2025년 6월에 만기가 되는 전환 노트를 부분적으로 상환하거나 재매입할 계획입니다. 이offer는 2024년 12월 20일에 종료될 예정입니다. 제공 후 Varex는 2000만 달러의 장비 신용 계약을 종료할 것입니다. 이 노트는 국내 및 선택된 해외 자회사에 의해 보증되며, 장비, 자본 주식, 지식 재산권 및 특정 부동산에 대한 우선 담보 이익으로 보장됩니다.
Varex Imaging (VREX) a fixé une offre privée de 125 millions de dollars en obligations senior garanties à 7,875% arrivant à échéance le 15 octobre 2027, à 101,5% de la valeur nominale. Ces obligations s'ajoutent aux 243 millions de dollars existants provenant de l'émission initiale de 300 millions de dollars réalisée en septembre 2020.
L'entreprise prévoit d'utiliser le produit pour rembourser partiellement ou racheter des obligations convertibles arrivant à échéance en juin 2025. L'offre devrait se clôturer le 20 décembre 2024. Suite à l'offre, Varex mettra fin à son accord de crédit équipement de 20 millions de dollars. Les obligations seront garanties par des filiales nationales et certaines étrangères, et sécurisées par un intérêt de premier rang dans les équipements, le capital, la propriété intellectuelle et certains biens immobiliers.
Varex Imaging (VREX) hat eine private Platzierung von 125 Millionen Dollar in 7,875% senior gesicherten Anleihen mit Fälligkeit am 15. Oktober 2027 zu 101,5% des Nennwerts festgelegt. Diese Anleihen sind zusätzlich zu den bestehenden 243 Millionen Dollar, die aus der ursprünglichen Emission von 300 Millionen Dollar im September 2020 stammen.
Das Unternehmen plant, die Erlöse teilweise zur Rückzahlung oder zum Rückkauf von Wandelanleihen mit Fälligkeit im Juni 2025 zu verwenden. Es wird erwartet, dass das Angebot am 20. Dezember 2024 schließt. Nach dem Angebot wird Varex die Kreditvereinbarung über Geräten im Wert von 20 Millionen Dollar kündigen. Die Anleihen werden von inländischen und ausgewählten ausländischen Tochtergesellschaften garantiert und durch sicheres Erstinteresse an Ausrüstungen, Eigenkapital, geistigem Eigentum und bestimmten Immobilien abgesichert.
- Successful pricing of $125 million senior secured notes offering
- Strategic debt refinancing to address upcoming 2025 convertible notes maturity
- Strong security package with first-priority interest in key assets
- Higher interest rate at 7.875% could increase debt service costs
- Additional debt issuance may impact company's leverage ratios
- Premium pricing at 101.5% of principal value increases effective borrowing cost
Insights
The closing of the Offering is expected to occur on December 20, 2024, subject to the satisfaction of other customary conditions. Following the consummation of this offering of the notes, Varex intends to terminate its Equipment Credit Agreement, dated April 26, 2024, in the amount of
The notes will be guaranteed on a senior secured basis, jointly and severally, by its existing and future domestic subsidiaries and certain foreign subsidiaries that guarantee Varex’s Revolving Credit Facility. The notes and the related guarantees will be secured by a first priority security interest in certain of its and the guarantors’ equipment, capital stock and intellectual property and certain of its real property that does not secure the obligations under the Revolving Credit Facility, and a second lien, junior to the liens that secure obligations under the Revolving Credit Facility, on inventory, accounts receivables, cash, accounts and intercompany loans and certain of its real property, in each case subject to certain exceptions and permitted liens.
The notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state or other securities laws and may not be offered or sold in
No Offer or Solicitation
This press release is neither an offer to sell nor a solicitation of an offer to buy the notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful. The Offering is made only by, and pursuant to, the terms set forth in the related offering circular. The Offering is not being made to persons in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.
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. Statements concerning the expected closing of the Offering, the use of proceeds raised in the Offering to repay or repurchase existing Convertible Notes, expected termination of the Equipment Credit Agreement, that the notes will not be registered pursuant to
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/20241217878414/en/
For Information Contact:
Christopher Belfiore
Director of Investor Relations
Varex Imaging Corporation
801.973.1566 | investors@vareximaging.com
Source: Varex Imaging Corporation
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