Varex Imaging Corporation (NASDAQ: VREX) has recently completed a significant debt refinancing, marking a strategic move to strengthen its financial position. The company entered into a credit agreement that includes a secured term loan facility of $350 million, a secured revolving credit facility of $100 million, and a secured delayed draw term loan facility of $40 million, amounting to aggregate commitments of $490 million maturing on March 13, 2031. The refinancing involved redeeming its $368 million senior secured notes due in 2027 and terminating the existing $155 million revolving credit facility.
The company used approximately $42 million in cash for the refinancing, resulting in a net reduction in outstanding debt of $18 million. Additionally, approximately $7 million was paid to senior secured note holders as a call premium, with an accrued interest on the redeemed notes amounting to around $12 million, and transaction fees totaling approximately $5 million.
As a result of the refinancing, Varex Imaging Corporation expects to achieve an annualized reduction in cash interest expense of over $7 million, primarily driven by lower interest rates and the $18 million reduction in outstanding debt. The company anticipates that the reduced debt and lower interest rate will enhance its financial flexibility, support improved free cash flow generation, and enable continued investment in its core business, while prioritizing long-term shareholder value.
Varex Imaging Corporation is a leading innovator, designer, and manufacturer of x-ray imaging components and systems for medical, industrial, and security applications. The company's products, including x-ray tubes, digital detectors, and image processing solutions, are utilized by global OEM manufacturers in their imaging systems. Headquartered in Salt Lake City, Utah, Varex employs approximately 2,400 people across North America, Europe, and Asia.
For additional details regarding the credit facility and the refinancing, Varex Imaging Corporation has disclosed relevant information in its Form 8-K filed with the Securities and Exchange Commission on March 16, 2026. As a result of these announcements, the company's shares have moved -0.51% on the market, and are now trading at a price of $13.79. For more information, read the company's full 8-K submission here.
