Proceeds from Salt Lake City-based Varex’s notes, due 2027, are earmarked for the payment in full all amounts outstanding under its existing credit facility, including its term loan and revolving credit facility. Another use for the proceeds is general corporate purposes.
Concurrent with the fofering, Varex expects to enter into a new senior secured asset-based revolving credit facility in an initial aggregate principal amount of up to $100 million, according to a news release.
The notes will be guaranteed on a senior secured basis, jointly and severally, by existing and future domestic subsidiaries and certain foreign subsidiaries. The notes and related guarantees will be secured by a first priority security interest in addition to a lien on substantally all of its and the guarantors’ intellectual property, investment property and general intangibles.
A second lien will secure obligations on accounts receivables, inventory, deposit accounts, securities accounts, intercompany loans, equipment and related assets.