BEDFORD, Mass., May 29, 2015 /PRNewswire/ -- Hologic, Inc.
(NASDAQ: HOLX) announced today that the Company has entered into a
new, five-year secured credit agreement consisting of a
$1.5 billion senior Term Loan and a
$1 billion revolving credit
facility.
Hologic has borrowed $0.175
billion against the new revolver initially, and used these
proceeds and the Term Loan to pay off the Company's previous senior
secured term loans, which had an aggregate principal amount
outstanding of $1.69 billion as of
March 28, 2015. As a result,
the Company's total indebtedness remains substantially
unchanged.
"This new credit agreement contributes to the continued
transformation of Hologic's balance sheet," said Bob McMahon, the Company's Chief Financial
Officer. "By refinancing the term loans, we reduce our
interest expense and increase our financial flexibility, while
extending our debt maturities. At the same time, upsizing our
revolver provides us additional flexibility to retire our
convertible notes when they become callable."
The new loan facilities mature on May
29, 2020. Current borrowings bear interest at an
annual rate of LIBOR + 1.75% based on Hologic's current leverage
ratio. Over the next five years and on a quarterly basis
prior to maturity, the Company will be required to make minimum
principal payments on the new Term Loan in annualized amounts of
$75 million, $75 million, $112.5
million, $150 million and
$150 million, respectively.
The new revolving credit facility carries an initial unused fee
of 0.35% annually based on Hologic's current leverage ratio.
In connection with the refinancing, Hologic eliminated its previous
$300 million 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 a leading developer, manufacturer and supplier
of premium diagnostic products, medical imaging systems and
surgical products. The Company's core business units focus on
diagnostics, breast health, GYN surgical, and skeletal
health. With a unified suite of technologies and a robust
research and development program, Hologic is dedicated to The
Science of Sure. 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. 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. 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.