Hologic extends $3 billion of credit facilities, lowers interest

By Sarah Lizee

Olympia, Wash., Dec. 18 – Hologic, Inc. refinanced its $1.5 billion senior term loan and $1.5 billion revolving credit facility on Monday, extending the maturity to Dec. 15, 2023 and reducing 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 175 bps, down from 100 bps to 200 bps. The margin is based on the total net leverage ratio. Initially, interest is Libor plus 137.5 bps.

The commitment fee is initially 20 bps, down from 25 bps. It ranges from 15 bps to 25 bps and is also based on leverage.

The borrowers may elect to establish additional incremental loans up to a sum of $750 million 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 $9,375,000 per three-month period commencing with the three-month period ending on Dec. 27, 2019 to $28,125,000 commencing with the three-month period ending on Dec. 29, 2022. The remaining balance of the term loan is due at maturity.

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

The revolver contains sublimits, including a letter-of-credit sublimit equal to the lesser of $100 million and the total revolving commitments, and a swingline sublimit equal to the lesser of $50 million and the total revolving commitments.

The company initially borrowed $350 million under the revolver. The initial borrowing, together with the net proceeds of the term loan, was used to repay the amounts outstanding under the term loan and revolving credit facility 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.

Additionally, some affirmative and negative covenants were modified under the amendment to provide the company with additional financial flexibility.

Merrill Lynch, Pierce, Fenner & Smith Inc., Wells Fargo Bank, NA, Goldman Sachs Bank USA, JPMorgan Chase Bank, NA and Bank of Tokyo-Mitsubishi UFJ, Ltd. are joint lead arrangers and bookrunners, with Bank of America, NA the administrative agent. Merrill Lynch, Wells Fargo, Goldman, JPMorgan and Bank of Tokyo-Mitsubishi are co-syndication agents. DNB Bank ASA, New York, HSBC Bank USA, NA, Morgan Stanley Senior Funding, Inc., Sumitomo Mitsui Banking Corp. and Citigroup Global Markets Inc. are co-documentation agents.

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

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