OSI Systems Expands Credit Facility to $750 Million
December 27 2021 - 8:30AM
Business Wire
- Provides enhanced operational and financial
flexibility
- Maintains current favorable pricing
- Extends maturity to 2026
OSI Systems, Inc. (NASDAQ: OSIS) (the “Company” or “OSI
Systems”) today announced that it has entered into an amendment to
its senior secured credit facility that increases the aggregate
amount available to borrow from $535 million to $750 million. The
amended facility is comprised of a $600 million revolving credit
facility and a $150 million delayed draw term loan. The amendment
also increases the flexibility of certain provisions and extends
the maturity from April 2024 to December 2026.
Alan Edrick, Executive Vice President and Chief Financial
Officer, stated, “We are pleased to successfully complete this
refinancing at very attractive pricing to facilitate continued
growth while simultaneously providing enhanced options for our
convertible notes maturing September 2022. This transaction
illustrates the strength of our business and the continued strong
support from our lenders.”
The revolver and the term loan are each priced in accordance
with the Company’s prior low-cost interest rate grid. As of the
amendment date, borrowings under the revolving credit facility bore
interest at the rate of LIBOR + 1.0%. The term loan was not funded
at closing and is available to the Company to draw through
September 1, 2022 and, if drawn, will mature concurrently with the
revolving credit facility. The Company may prepay the revolver and
the term loan at any time without penalty.
Wells Fargo Securities, LLC, BofA Securities, Inc. and JPMorgan
Chase Bank, N.A. served as Joint Lead Arrangers and Joint
Bookrunners.
Wells Fargo Bank, National Association, will serve as the
Administrative Agent on the amended credit facility.
About OSI Systems
OSI Systems is a vertically integrated designer and manufacturer
of specialized electronic systems and components for critical
applications in the homeland security, healthcare, defense, and
aerospace industries. The Company combines more than 40 years of
electronics engineering and manufacturing experience with offices
and production facilities in more than a dozen countries to
implement a strategy of expansion into selective end-product
markets. For more information on OSI Systems or any of its
subsidiary companies, visit OSI Systems. News Filter: OSIS-G
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements relate to OSI Systems’ current
expectations, beliefs, and projections concerning matters that are
not historical facts. Forward-looking statements are not guarantees
of future performance and involve uncertainties, risks,
assumptions, and contingencies, many of which are outside OSI
Systems’ control and which may cause actual results to differ
materially from those described in or implied by any
forward-looking statements. Undue reliance should not be placed on
forward-looking statements, which are based on currently available
information and speak only as of the date on which they are made.
OSI Systems assumes no obligation to update any forward-looking
statement made in this press release that becomes untrue because of
subsequent events, new information, or otherwise, except to the
extent it is required to do so in connection with its ongoing
requirements under Federal securities laws. For a further
discussion of factors that could cause OSI Systems’ future results
to differ materially from any forward-looking statements, see the
section entitled "Risk Factors" in OSI Systems’ most recently filed
Annual Report on Form 10-K and other risks described therein and in
documents subsequently filed by OSI Systems from time to time with
the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20211227005045/en/
OSI Systems, Inc. Ajay Vashishat Vice President, Business
Development 310-349-2237 avashishat@osi-systems.com
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