Hologic Announces Completion of Term Loan B Repricing
Interest rate on Term Loan B reduced by 75 basis points
Credit Agreement Covenants Modified to Increase Flexibility to Return Capital to Shareholders
$200 Million Term Loan B Prepayment
BEDFORD, Mass., Aug. 2, 2013 /PRNewswire/ -- Hologic, Inc. (Hologic or the Company) (NASDAQ: HOLX), a leading developer, manufacturer and supplier of premium diagnostics products, medical imaging systems and surgical products with an emphasis on serving the healthcare needs of women, announced today that the Company 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.
About Hologic, Inc.
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. The Company operates four core business units focused on diagnostics, breast health, GYN surgical and skeletal health. With a comprehensive suite of technologies and a robust research and development program, Hologic is committed to improving lives. The Company is headquartered in Massachusetts. For more information, visit www.hologic.com.
Hologic and associated logos are trademarks and/or registered trademarks of Hologic, Inc. and/or its subsidiaries in the United States and/or other countries.
SOURCE Hologic, Inc.