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Varex Announces Closing of Offering of $200 Million of 4.00% Convertible Senior Notes Due 2025, Including Full Exercise of Option to Purchase Additional Notes
SALT LAKE CITY--(BUSINESS WIRE)-- Varex Imaging Corporation (Nasdaq: VREX) today announced the closing of its previously announced offering of $200.0 million
About this update from Varex Imaging Corporation
[{"type":"text","content":" SALT LAKE CITY--(BUSINESS WIRE)--\nVarex Imaging Corporation (Nasdaq: VREX) today announced the closing of its previously announced offering of $200.0 million aggregate principal amount of its 4.00% Convertible Senior Notes due 2025 (the “notes”), which includes the exercise in full by the initial purchasers of their option to purchase $25.0 million aggregate principal amount of notes, in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).\n\n\nIn connection with the offering of the notes, Varex has entered into convertible note hedge and warrant transactions that are designed to offset the effect of dilution from the conversion of the notes up to an approximately 50% premium to the closing price of Varex’s common stock on June 4, 2020.\n\n\nVarex estimates that the net proceeds from the offering will be approximately $193.3 million, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses. Varex intends to use the net proceeds from the offering of the notes to fund the net cost of entering into the convertible note hedge transactions (including the additional convertible note hedge transactions in connection with the initial purchasers’ option to purchase additional notes and after such cost is partially offset by the proceeds Varex receives from entering into the warrant transactions and the additional warrant transactions) and $75.0 million to partially repay indebtedness under Varex’s credit agreement. Varex intends to use the remainder of the net proceeds for general corporate purposes.\n\n\nThe notes are senior unsecured obligations of Varex and will accrue interest at a rate of 4.00% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020. The notes will mature on June 1, 2025, unless earlier converted, redeemed, or repurchased. The notes will not be redeemable prior to June 1, 2023. Varex may redeem all or any portion of the notes, at Varex’s option, on or after June 1, 2023 and on or before the 60th scheduled trading day immediately prior to the maturity date, at a cash redemption price equal to the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price of Var...