Provides enhanced operational and financial flexibility
Maintains current favorable pricing
Extends maturity to 2026
OSI Systems, Inc. announced that it has entered into an amendment to its senior secured credit facility that increases the aggregate amount available to borrow from $535 million to $750 million. The amended facility is comprised of a $600 million revolving credit facility and a $150 million delayed draw term loan. The amendment also increases the flexibility of certain provisions and extends the maturity from April 2024 to December 2026.
Recommended AI News: Abacus.AI Named a 2021 Gartner Cool Vendor
Alan Edrick, Executive Vice President and Chief Financial Officer, stated, “We are pleased to successfully complete this refinancing at very attractive pricing to facilitate continued growth while simultaneously providing enhanced options for our convertible notes maturing September 2022. This transaction illustrates the strength of our business and the continued strong support from our lenders.”
The revolver and the term loan are each priced in accordance with the Company’s prior low-cost interest rate grid. As of the amendment date, borrowings under the revolving credit facility bore interest at the rate of LIBOR + 1.0%. The term loan was not funded at closing and is available to the Company to draw through September 1, 2022 and, if drawn, will mature concurrently with the revolving credit facility. The Company may prepay the revolver and the term loan at any time without penalty.
Recommended AI News: Sukna Ventures and Unifonic Close Their Successful Entrepreneurial Program with Demo Day Presentations
Wells Fargo Securities, LLC, BofA Securities, Inc. and JPMorgan Chase Bank, N.A. served as Joint Lead Arrangers and Joint Bookrunners.
Wells Fargo Bank, National Association, will serve as the Administrative Agent on the amended credit facility.
Recommended AI News: Full Harvest Secures $23 Million Series B to Reduce On-Farm Food Waste by Digitizing the Produce Supply Chain
[To share your insights with us, please write to sghosh@martechseries.com]
Comments are closed.