Hologic (NSDQ:HOLX) today announced both a private offering of $350 million in senior notes due 2025 and $3 billion from a new term loan and revolving credit facility as it looks to restructure its finances.
The Marlborough, Mass.-based company said it expects to use the funds from both the $350 million offering and new credit agreement to retire its remaining convertible notes after they become callable in December 2017 and March 2018, according to a press release.
Hologic said the senior notes will be offered only to qualified institutional buyers, and that the offering is subject to market and other conditions.
The company’s new credit agreement consists of both a 5-year $1.5 billion senior term loan and a $1.5 billion revolving credit facility. The loan facility is set to mature on Oct. 3, 2022.
“This new credit agreement extends our debt maturities and increases our financial flexibility. In addition, increasing the size of our revolver will provide some of the capacity to retire our remaining convertible notes when they become callable,” Hologic CFO Bob McMahon said in a prepared statement.
Hologic said it initially borrowed $345 million against the new credit facility, and has terminated its previous $1 billion revolving facility.
Late last month, Hologic said it won expanded FDA 510(k) clearance for its subsidiary Cynosure’s SculpSure non-invasive body contouring laser, now cleared to treat the submental area.