Varex Imaging Corp 8-K

What Happened
Varex Imaging Corporation announced that on March 13, 2026 it entered into a Credit and Guaranty Agreement providing a secured Credit Facility and drew $350.0 million from the term loan portion that same day. The Credit Facility includes a $350.0M secured term loan, a $100.0M secured revolving credit facility (with a $35.0M letter of credit sub‑facility and $20.0M swingline), and a $40.0M secured delayed draw term loan, and matures March 13, 2031. Proceeds from the $350.0M draw, together with existing cash, were used to fund the conditional full redemption of all outstanding $368.0M aggregate principal of Varex’s 7.875% Senior Secured Notes due 2027; the company deposited funds with the trustee on March 13, 2026 and the indenture was satisfied and discharged.

Key Details

• New Credit Facility signed March 13, 2026: $350M term loan, $100M revolver (includes $35M LC and $20M swingline), $40M delayed draw; maturity March 13, 2031.
• $350M drawn on the term loan on March 13, 2026; revolver available for working capital and general corporate purposes.
• Redeemed all $368M principal of 7.875% Senior Secured Notes due 2027; funds deposited with trustee March 13, 2026 and indenture discharged.
• Prior Revolving Credit and Guaranty Agreement (dated March 26, 2024, up to $155M) was terminated concurrently; there were no outstanding borrowings under it at termination.
• Loan pricing: interest based on SOFR (plus margin) or alternate base rate plus margin; pricing tiered by the company’s consolidated total net leverage ratio. Credit Agreement includes customary covenants, guarantees by certain subsidiaries and events of default.

Why It Matters
This transaction replaces the company’s prior credit arrangement, extends secured financing maturities to 2031, and eliminates the high‑coupon 2027 notes by redeeming them in full. For investors, the moves affect Varex’s capital structure and liquidity profile—providing committed revolving capacity for working capital while consolidating debt under a new secured facility. The Credit Agreement includes customary covenants and guarantees that will govern Varex and certain subsidiaries going forward; events of default could lead to acceleration of obligations if triggered.