Varex Imaging Finalizes $125 Million Senior Secured Notes Deal
Varex Imaging Secures $125 Million Through Senior Notes Offering
Varex Imaging Corporation (Nasdaq: VREX) has successfully closed a private offering worth $125 million in senior secured notes. This marks a significant step for the company, bolstering its financial position as it aims to manage existing debt obligations while preparing for future growth opportunities.
Details of the Offering
The offering involved 7.875% senior secured notes due in 2027. These notes, sold at an offering price of 101.5% of their principal amount, will accumulate interest from and including October 15. The decision to secure these funds indicates Varex's strategic approach to managing its finances.
Management Insights
Sam Maheshwari, the Chief Financial Officer of Varex, expressed satisfaction with the progress made during this offering. He noted that the funds raised will facilitate the partial repayment of convertible notes that are scheduled to mature in June 2025. This maneuver not only aids in meeting current obligations but also helps in preserving liquidity under their revolving credit facility.
Understanding the Senior Secured Notes
Senior secured notes are a critical tool for companies looking to strengthen their financial footing, especially in the face of upcoming repayment obligations. By securing favorable terms through this offering, Varex positions itself to navigate the complexities of its financial landscape effectively. The notes will assist in managing financial liabilities while ensuring that the company maintains sufficient operational flexibility.
About Varex Imaging Corporation
Varex Imaging Corporation is a recognized leader in the design and manufacturing of X-ray imaging components. These essential products, which include X-ray tubes and digital detectors, play a vital role in medical imaging as well as in various industrial and security applications. With a legacy of over 75 years of innovation, Varex serves numerous global OEM manufacturers, providing them with key components for their imaging systems. Headquartered in Salt Lake City, Varex employs around 2,300 individuals across North America, Europe, and Asia, contributing to a diverse and skilled workforce.
Future Outlook
The closing of this offering positions Varex well for the upcoming challenges and opportunities that lie ahead. With a focus on innovation and efficiency, the company is likely to explore additional avenues for growth while ensuring its existing commitments are met. Stakeholders will be keeping a close eye on Varex's next moves as it harnesses these funds to enhance its operational capabilities.
Frequently Asked Questions
What are the senior secured notes issued by Varex?
The senior secured notes are financial instruments offered by Varex to raise $125 million, with a fixed interest rate of 7.875% due in 2027.
Who is the CFO of Varex Imaging Corporation?
Sam Maheshwari serves as the Chief Financial Officer of Varex Imaging Corporation.
What is the purpose of the funds raised from the offering?
The funds will be used to partially repay existing convertible notes due in June 2025 and to maintain liquidity under Varex's revolving credit facility.
How does Varex contribute to the imaging industry?
Varex Imaging Corporation manufactures critical components such as X-ray tubes and digital detectors that are used in medical, industrial, and security imaging systems.
Where is Varex headquartered?
Varex Imaging Corporation is headquartered in Salt Lake City, Utah, and employs approximately 2,300 people globally.
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