Varex Imaging Corporation (NASDAQ: VREX) has announced a private offering of $125 million aggregate principal amount of its 7.875% senior secured notes due October 15, 2027. This offering represents a further issuance of the company's 7.875% senior secured notes due 2027, initially issued in an aggregate principal amount of $300 million on September 30, 2020, of which $243 million aggregate principal amount is outstanding.
The net proceeds from the sale of the notes will be used to fund the partial repayment of the company’s outstanding convertible notes due June 2025, on their maturity date or to repurchase part of the convertible notes prior to their maturity date. 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 equipment, capital stock, intellectual property, and real property, 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 real property, subject to certain exceptions and permitted liens.
It's important to note that the notes will not be registered under the Securities Act of 1933 or any state or other securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the securities act and applicable state laws. The offering is intended for qualified institutional buyers pursuant to rule 144a under the Securities Act and to non-U.S. persons outside the United States pursuant to regulation S.
Varex Imaging Corporation is a leading innovator, designer, and manufacturer of x-ray imaging components, including x-ray tubes, digital detectors, and other image processing solutions. The company's products are utilized in medical imaging, industrial, and security imaging applications. Varex employs approximately 2,300 people located in North America, Europe, and Asia.
These developments indicate Varex's strategic financial decision to raise funds through a private offering to address its outstanding convertible notes, while also securing its obligations through guarantees and liens. As a result of these announcements, the company's shares have moved 0.7% on the market, and are now trading at a price of $15.3. If you want to know more, read the company's complete 8-K report here.
