Varex Imaging signs $155 million revolver with Zions

By William Gullotti

Buffalo, N.Y., March 27 – Varex Imaging Corp. and various subsidiaries entered into a $155 million senior secured revolving credit agreement with Zions Bancorporation, NA, doing business as Zions First National Bank, as administrative agent and collateral agent on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The revolver matures Sept. 26, 2027.

There is a $25 million sublimit for letters of credit and a $20 million sublimit for swingline loans.

Borrowings will be dollar-denominated, bearing interest at SOFR plus a margin ranging from 200 basis points to 275 bps. There is also an unused commitment fee ranging from 30 bps to 40 bps.

The margin and fee are determined by the company’s consolidated total net leverage ratio. The fee and margin were set at 37.5 bps and 250 bps, respectively, at closing.

The facility was undrawn at closing.

At closing, Varex terminated its senior secured ABL revolver, signed Sept. 30, 2020 with Bank of America, NA as administrative agent and collateral agent, also with no outstanding balance.

In addition to its duties as administrative agent and collateral agent, Zions is also the lead arranger and bookrunner.

UMB Bank, NA and U.S. Bank NA are the co-documentation agents.

Varex is a Salt Lake City-based designer and manufacturer of X-ray imaging components.

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