Hologic, Inc. completed a repricing of its senior secured tranche B term loan facility (Term Loan B) under the company's Credit and Guaranty Agreement (Credit Agreement) dated August 1, 2012.
On Aug. 2, 2013, the company and several of its domestic subsidiaries (Guarantors), together with Goldman Sachs Bank USA, as administrative and collateral agent, and the lenders party thereto entered into Refinancing Amendment No. 2 (Credit Agreement Amendment 2) to the Credit Agreement.
The Credit Agreement Amendment 2 refinances the company's existing Term Loan B with a maturity date of August 1, 2019, resulting in a 75 basis point reduction in the interest rate as of the Credit Agreement Amendment 2 closing date (from 3.50% plus LIBOR with a 1.00% floor to 2.75% plus LIBOR with a 1.00% floor). In conjunction with the refinancing, the Credit Agreement Amendment 2 also amends certain of the covenants in the Credit Agreement to increase the company's capacity to repurchase shares of its common stock and issue dividends. The company increased its general restricted junior payments basket to $250 million (from $25 million) and increased the total net leverage allowable to 4.0x (from 3.5x) for directing unused excess cash flow for restricted junior payments. In addition, the Company voluntarily prepaid $200 million of the Term Loan B on August 2, 2013. In connection with this prepayment, the company will incur a one-time non-cash charge to earnings in the fourth quarter of approximately $4 million to write-off certain deferred financing costs. Immediately following the completion of this prepayment, the principal amount outstanding on the Term Loan B was approximately $1.285 billion.
Previously, on March 20, 2013, the company entered into an amendment to its Credit Agreement in which it refinanced its senior secured tranche A term loan facility and senior secured revolving credit facility, resulting in a 100 basis point reduction in the interest rates on each of those facilities.
Hologic, Inc. is a leading developer, manufacturer and supplier of premium diagnostic products, medical imaging systems, and surgical products, with an emphasis on serving the healthcare needs of women.