Varex Prices Offering of $175 Million 4.00% Convertible Senior Notes Due 2025

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[{"type":"text","content":" SALT LAKE CITY--(BUSINESS WIRE)--\nVarex Imaging, Corp. (Nasdaq: VREX) today announced the pricing of its offering of $175.0 million aggregate principal amount of its 4.00% Convertible Senior Notes due 2025 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In connection with the offering, Varex granted the initial purchasers a 13-day option to purchase, for settlement within a period of 13 days from, and including, the date notes are first issued, up to an additional $25.0 million aggregate principal amount of notes. The offering is expected to close on June 9, 2020, subject to customary closing conditions.\n\n\nIn connection with the offering of the notes, Varex has entered into convertible note hedge and warrant transactions, with one or more financial institutions, including certain of the initial purchasers or their affiliates (the “hedge counterparties”), that are designed to offset the effect of dilution from the conversion of the notes up to an approximately 50% premium to today’s closing price.\n\n\nVarex estimates that the net proceeds from the offering will be $169.0 million (or $193.3 million if the initial purchasers exercise their option to purchase additional notes in full), 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 (after such cost is partially offset by the proceeds Varex receives from entering into the 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. If the initial purchasers exercise their option to purchase additional notes, Varex intends to use a portion of the additional net proceeds to fund the cost of entering into additional convertible note hedge transactions (after such cost is partially offset by the proceeds that Varex receives from entering into the additional warrant transactions).\n\n\nThe notes will be 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, beginn...

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