Varex Imaging Corporation announced the pricing of a private offering for $125 million aggregate principal amount of 7.875% senior secured notes due October 15, 2027. The notes were offered at 101.5% of their principal amount, plus accrued and unpaid interest. These new notes will be issued as "Additional Notes" under the existing indenture.
The company intends to use the net proceeds from this offering to partially repay its outstanding $200 million Convertible Notes, which are set to mature in June 2025. The closing of this offering is anticipated on December 20, 2024, subject to customary conditions.
Following the consummation of this offering, Varex plans to terminate its $20 million Equipment Credit Agreement. The notes will be guaranteed on a senior secured basis by its domestic and certain foreign subsidiaries, and will be secured by a first priority interest in specific assets and a second lien on others.
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