Varex Announces Pricing of Private Offering of $300 Million of Senior Secured Notes

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[{"type":"text","content":" SALT LAKE CITY--(BUSINESS WIRE)--\nVarex Imaging Corporation (Nasdaq: VREX) today announced it has priced a private offering (the “Offering”) of $300 million aggregate principal amount of 7.875% senior secured notes due 2027 (the “notes”) at an offering price of 100% of the principal amount thereof. Varex intends to use the net proceeds from the sale of the notes to pay in full all amounts outstanding under its existing credit facility, which includes its term loan and revolving credit facility, and for general corporate purposes.\n\nThe closing of the Offering is expected to occur on September 30, 2020, subject to the satisfaction of other customary conditions, and is expected to occur simultaneously with entering into a senior secured asset-based revolving credit facility (the “ABL Credit Facility”) in an initial aggregate principal amount of up to $100 million. The closing of the Offering, however, is not contingent upon the effectiveness of the ABL Credit Facility, and Varex cannot assure that the ABL Credit Facility will become effective or, if it becomes effective, on what terms.\n\nThe notes will be guaranteed on a senior secured basis, jointly and severally, by its existing and future domestic subsidiaries and certain foreign subsidiaries that will guarantee or borrow amounts under the ABL Credit Facility (the “guarantors”). The notes and the related guarantees will be secured by a first priority security interest in, among other assets, certain of its and the guarantors’ real property, equipment, capital stock and intellectual property, and a second lien, junior to the lien that will secure obligations under the ABL Credit Facility, on, among other assets, accounts receivables, inventory, cash, accounts and intercompany loans, in each case subject to certain exceptions and permitted liens.\n\nThe notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) 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. Varex plans to offer and issue the notes only to 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. The notes...

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