Varex Imaging Corporation to Redeem Its 7.875% Senior Secured Notes Due 2027
MWN-AI** Summary
Varex Imaging Corporation (Nasdaq: VREX) has announced a conditional full redemption of its outstanding 7.875% senior secured notes, totaling $368 million, set to mature on October 15, 2027. The redemption is scheduled for March 16, 2026, with a redemption price of 101.969% of the principal amount, amounting to $1,052.72125 per $1,000 of notes, inclusive of any accrued interest. This strategic move is part of Varex's financial restructuring and will be funded through a new credit facility combined with existing cash.
The execution of the redemption is contingent upon the successful completion of this new financing, termed the "Financing Condition." If this condition is not met, Varex retains the right to rescind the redemption notice, and any adjustments to the redemption schedule will be communicated to noteholders promptly. Following the redemption, the notes will be considered canceled, and interest payments will cease.
Varex Imaging, headquartered in Salt Lake City, is renowned for its innovation in the design and manufacture of X-ray imaging components, including tubes and digital detectors utilized in medical, industrial, and security imaging applications. With over 70 years in the industry, the company employs around 2,400 people across North America, Europe, and Asia.
This announcement also includes forward-looking statements subject to risks, such as the successful completion of the new financing. Investors are encouraged to consider these risks and monitor Varex's filings with the Securities and Exchange Commission for additional context.
For further inquiries, investors can contact Christopher Belfiore, the Director of Investor Relations at Varex Imaging Corporation.
MWN-AI** Analysis
Varex Imaging Corporation’s recent announcement to conditionally redeem its 7.875% senior secured notes due October 2027 signifies a strategic financial maneuver worthy of investor attention. With an aggregate principal of $368 million, this redemption plan, scheduled for March 16, 2026, could positively influence the company’s balance sheet by reducing its indebtedness and associated interest expenses.
The company intends to fund this redemption primarily through proceeds from a new credit facility and existing cash reserves. However, investors should be mindful of the "Financing Condition," which hinges on securing sufficient funds for the redemption. Should this condition not be satisfied, Varex reserves the right to rescind the notice, leaving the notes outstanding. This provides a potential risk for current noteholders who are looking for immediate liquidity.
From a market perspective, if the financing condition is met, the accelerated redemption can bolster Varex’s financial health by decreasing leverage and improving its credit profile. Consequently, this could lead to more favorable borrowing terms in the future and a stronger competitive position within its industry. Furthermore, the cessation of interest payments once the notes are redeemed could enhance profitability.
Investors should closely monitor the developments regarding the New Financing arrangement leading up to the redemption date. Failure to complete this funding could result in short-term volatility in VREX’s stock price as market sentiment reacts to the uncertainty surrounding the redemption execution.
In conclusion, Varex’s decision to redeem its senior secured notes reflects a proactive approach to financial management. However, the efficacy of this strategy heavily relies on successful completion of the financing. Investors should keep a close watch on Varex’s communications and market performance leading up to the redemption date to gauge the ongoing impact on shareholder value.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Varex Imaging Corporation (Nasdaq: VREX) (the “Company” or “Varex”) today announced it has issued a notice of conditional full redemption of all of its outstanding 7.875% senior secured notes due October 15, 2027 (the “Notes”) on March 16, 2026 (the “Redemption Date”).
The aggregate principal amount of the outstanding Notes is $368,000,000. The redemption price for the Notes will be equal to 101.969% of the principal amount of the Notes, together with accrued and unpaid interest on the Notes to, but not including the Redemption Date, for a total payment to holders of $1,052.72125 per $1,000 principal amount of the Notes.
The Company intends to fund the redemption of the Notes with proceeds from the funding of a new credit facility to be entered into between or among the Company and one or more lenders (the “New Financing”) and cash on hand. In accordance with the terms of the indenture governing the Notes, the obligation of the Company to redeem the Notes and pay the redemption price to the holders of the Notes on the Redemption Date is subject to consummation of the New Financing that will provide sufficient funds to pay the redemption price (the “Financing Condition”) and the Redemption Date may be delayed until the Financing Condition has been satisfied or waived by the Company. If the Financing Condition is not satisfied, the Company may elect to rescind the notice of conditional full redemption and terminate the redemption. If the Redemption Date is extended or the redemption is terminated, the Company will provide notice to holders of the Notes on the second business day immediately preceding the Redemption Date.
Assuming satisfaction or waiver by the Company of the Financing Condition, on and after the Redemption Date, the Notes will no longer be deemed outstanding, interest will cease to accrue thereon, and all rights of the holders of the Notes will cease, except for the right to receive the redemption price.
Payment of the redemption price for the Notes will be made in accordance with the applicable procedures of the Depository Trust Company.
Computershare Trust Company, N.A. is the trustee, collateral agent, paying agent and registrar of the Notes.
This press release is for information purposes only and shall not constitute a notice of redemption. The conditional redemption shall be made solely pursuant to the official notice of conditional full redemption required under the indenture governing the Notes, which notice shall be provided by the trustee on behalf of the Company. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the Notes or any other securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
About Varex
Varex Imaging Corporation is a leading innovator, designer, and manufacturer of X-ray imaging components, which include X-ray tubes, digital detectors, and other image processing solutions that are key components of X-ray imaging systems, as well as X-ray imaging systems for industrial applications. With a 70+ year history of successful innovation, Varex’s products are used in medical imaging as well as in industrial and security imaging applications. Global OEM manufacturers incorporate the company’s X-ray sources, digital detectors, connecting devices, and imaging software in their systems to detect, diagnose, protect, and inspect. Headquartered in Salt Lake City, Utah, Varex employs approximately 2,400 people located in North America, Europe, and Asia. For more information visit vareximaging.com .
Forward-Looking Statements
Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “expect,” “anticipate,” “can,” “should,” “would,” “could,” “estimate,” “may,” “intend,” “potential,” and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s expectations, estimates, assumptions, and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially include the inability of the Company to successfully complete the New Financing or to otherwise satisfy or waive the Financing Condition, as well as other risks set forth as risk factors in the Company’s filings with the Securities and Exchange Commission, including its Quarterly and Annual Reports. The Company cautions you not to place undue reliance on the forward-looking statements contained in this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260306169746/en/
For Information Contact:
Christopher Belfiore
Director of Investor Relations
Varex Imaging Corporation
801.973.1566 | investors@vareximaging.com
FAQ**
How will Varex Imaging Corporation (VREX) ensure the successful completion of the New Financing necessary for the conditional full redemption of its senior secured notes?
What potential impacts on liquidity or operational capacity should investors in Varex Imaging Corporation (VREX) be aware of concerning the funding of the redemption?
In the event that the Financing Condition is not met, what are the implications for Varex Imaging Corporation (VREX) and its current bondholders regarding the redemption notice?
Can Varex Imaging Corporation (VREX) clarify any timelines concerning when they expect to finalize the New Financing ahead of the planned redemption date?
**MWN-AI FAQ is based on asking OpenAI questions about Varex Imaging Corporation (NASDAQ: VREX).
NASDAQ: VREX
VREX Trading
-1.96% G/L:
$11.235 Last:
120,641 Volume:
$11.18 Open:
