OSI Systems raises credit facility to $750 million, extends to 2026

Chicago, Dec. 30 – OSI Systems, Inc. expanded its senior secured credit facility to $750 million from a previous $535 million, according to a press release and an 8-K filing with the Securities and Exchange Commission.

The amended facility is a $600 million revolver, increased from $535 million, and a new $150 million delayed-draw term loan.

The maturity has also been extended to December 2026 from April 2024.

As part of the amendment, certain provisions are more flexible.

The amendment provides enhanced options for the company’s convertible notes maturing September 2022.

The revolver has an initial interest rate of Libor plus 100 basis points. The commitment fee is between 10 bps and 25 bps.

Based on the company’s net leverage ratio, interest will be between Libor plus 100 bps and 175 bps.

The term loan has not been funded and is available through Sept. 1, 2022.

Prepayments can be made at any time without penalty.

Wells Fargo Securities, LLC, BofA Securities, Inc. and JPMorgan Chase Bank, NA served as joint lead arrangers and joint bookrunners.

Bank of America, NA is the syndication agent.

Joint documentation agents are U.S. Bank NA, HSBC Bank USA, NA and JPMorgan Chase Bank, NA.

Wells Fargo Bank, NA is the administrative agent on the amended credit facility.

Based in Hawthorne, Calif., OSI is a designer and manufacturer of specialized electronic systems and components for applications in the homeland security, health care, defense and aerospace industries.

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