MARLBOROUGH, Mass.,
Oct. 4, 2017 /PRNewswire/
-- Hologic, Inc. (NASDAQ: HOLX) announced today that the
Company has entered into an amended and restated credit agreement
consisting of a new, five-year $1.5
billion senior term loan and $1.5
billion revolving credit facility.
Hologic has used the initial proceeds from the credit agreement
to pay off the Company's previous senior secured term loan and
revolver.
"This new credit agreement extends our debt maturities and
increases our financial flexibility," said Bob McMahon, Hologic's Chief Financial
Officer. "In addition, increasing the size of our revolver
will provide some of the capacity to retire our remaining
convertible notes when they become callable."
The new loan facilities mature on October
3, 2022, subject to adjustment in certain
circumstances. Borrowings initially bear interest at an
annual rate of LIBOR + 1.50%, and may change based on Hologic's
leverage ratio. Prior to maturity, the Company will be
required to make minimum principal payments on the new term loan in
annualized amounts of $37.5 million
in fiscal 2018, $75 million in fiscal
2019, $75 million in fiscal 2020,
$112.5 million in fiscal 2021, and
$150 million in fiscal 2022, with the
balance due at maturity.
Hologic has initially borrowed $345
million against the new revolving credit facility. The
revolver initially carries an unused fee of 0.25% annually, which
may change based on the Company's leverage ratio. In
connection with the refinancing, Hologic terminated its previous
$1 billion revolving credit
facility.
Multiple bank lenders participated in the financing, which was
led by Bank of America Merrill Lynch.
About Hologic, Inc.
Hologic, Inc. is an innovative medical technology company
primarily focused on improving women's health and well-being
through early detection and treatment. For more information on
Hologic, visit www.hologic.com.
Hologic, The Science of Sure, and associated logos are
trademarks and/or registered trademarks of Hologic, Inc. and/or its
subsidiaries in the United States
and/or other countries.
Forward-Looking Statements
This news release contains forward-looking information that
involves risks and uncertainties, including statements about the
Company's plans, objectives, expectations and intentions, and
statements regarding the Company's improved financial flexibility
and related expectations, including the Company's plans to retire
its remaining convertible notes. These forward-looking statements
are based on assumptions made by the Company as of this date and
are subject to known and unknown risks and uncertainties that could
cause actual results to differ materially from those
anticipated. These risks include, but are not limited to, the
risks associated with the Company's significant leverage, including
its ability to continue to satisfy its covenants and agreements
under the new Credit Agreement and other indebtedness, and to
otherwise comply with its payment obligations. In addition,
Hologic's election to redeem or repurchase the convertible notes
will be at its sole discretion, based upon market and business
conditions at the time of such determination. The risks
included above are not exhaustive. Other factors that could
adversely affect the Company's business and prospects are described
in the filings made by the Company with the SEC. The Company
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any such statements presented
here to reflect any change in expectations or any change in events,
conditions or circumstances on which any such statements are
based.
Contact
Michael
Watts
Vice President, Investor Relations and
Corporate Communications
(858) 410-8588
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SOURCE Hologic, Inc.