Hologic amends facility for $1.5 billion term loan, $2 billion revolver

By Wendy Van Sickle

Columbus, Ohio, Sept. 27 – Hologic, Inc. amended its credit agreement on Monday to provide for a $1.5 billion senior term loan and $2 billion revolving credit facility, with extended maturities of Sept. 25, 2026 and reduced interest rates, according to an 8-K filing with the Securities and Exchange Commission.

Interest is Libor plus a margin that ranges from 100 basis points to 125 bps, down from 100 bps to 175 bps. The margin is based on the total net leverage ratio. Initially, interest is Libor plus 100 bps.

The commitment fee is initially 15 bps. It ranges from 15 bps to 20 bps and is also based on leverage.

The borrowers may elect to establish additional incremental loans up to a sum of $1 billion and the maximum amount that would not cause the net senior secured leverage ratio to exceed 3.5 to 1, with some exceptions.

The company is required to make scheduled principal payments under the term loan in increasing amounts ranging from $3.75 million per three-month period commencing with the three-month period ending on Dec. 27, 2022 to $18.75 million commencing with the three-month period ending on Sept. 25, 2026. The remaining balance of the term loan is due at maturity.

The revolver contains sublimits, including a letter-of-credit sublimit equal to the lesser of $250 million and the total revolving commitments and a swingline sublimit equal to the lesser of $100 million and the total revolving commitments.

The term loan was used to repay the amounts outstanding under the term loan under the original credit agreement. Funds borrowed under the revolver may be used to provide working capital financing and funds for other general corporate and permitted purposes.

Borrowings made under the revolver may be made in some alternative currencies.

Hologic, Hologic GGO 4 Ltd. and Hologic U.K. Finance Ltd. remain as borrowers under the amended credit agreement.

BofA Securities Inc., Wells Fargo Bank, NA, Goldman Sachs Bank USA, JPMorgan Chase Bank, NA, Citibank NA and MUFG Bank, Ltd. are joint lead arrangers and bookrunners, with Bank of America, NA the administrative agent. BofA, Wells Fargo, Goldman, JPMorgan, Citibank and MUFG are co-syndication agents. DNB Bank ASA, New York, Morgan Stanley Senior Funding, Inc. and Sumitomo Mitsui Banking Corp. are co-documentation agents.

Hologic is a Marlborough, Mass.-based medical technology company focused on women’s health.

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