OSI Systems, Inc. (NASDAQ: OSIS) has successfully upsized and extended its senior secured credit facility, increasing the total borrowing capacity from $750 million to $825 million. The facility now consists of a $725 million revolving credit facility and a $100 million term loan. This expansion and extension enhance the company's operational and financial flexibility, as well as further optimize its favorable pricing structure.
The maturity of the credit facility has been extended from December 2026 to July 2030. Alan Edrick, Executive Vice President and Chief Financial Officer, emphasized that the improved terms include a more favorable pricing structure, fewer and less restrictive covenants, an increased accordion feature, and an extended maturity date. This transaction is a testament to the strength of OSI Systems' business and reflects the confidence of both its long-standing and new lending partners.
The joint lead arrangers and joint bookrunners for this transaction were Wells Fargo Securities, LLC, BofA Securities, Inc., JPMorgan Chase Bank, N.A., and PNC Capital Markets LLC. Wells Fargo Bank, National Association, will serve as the administrative agent on the facility.
This move positions OSI Systems to invest in strategic initiatives and drive long-term value, supported by the expected strong cash flow generation in fiscal 2026. OSI Systems is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, defense, and aerospace industries. With over 40 years of electronics engineering and manufacturing experience, the company operates in more than a dozen countries to expand into selective end-product markets. As a result of these announcements, the company's shares have moved 0.99% on the market, and are now trading at a price of $228.99. Check out the company's full 8-K submission here.
