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.
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.
Vice President, Investor Relations and
SOURCE Hologic, Inc.