Daily News: October 6, 2017

Bank of America Agents $3B Hologic Financing


Hologic entered into an amended and restated credit and guaranty agreement with Bank of America as administrative agent, swing line lender and L/C issuer.

The agreement amends and restates the company’s prior credit agreement, originally dated as of May 29, 2015.

The obligations of the borrowers are secured by first-priority liens on, and a first-priority security interest in substantially all of the U.S. assets of Hologic and the subsidiary guarantors.

The proceeds of the agreement may be used to satisfy certain existing indebtedness, including the repurchase of the company’s outstanding convertible notes due 2042 and 2043, and to provide working capital financing and funds for other general corporate and permitted purposes.

According to  a related 8-K filing, the credit facilities consist of a $1.5 billion secured term loan maturing October 3, 2022, which will spring to April 15, 2022 under certain conditions. The agreement also includes a secured revolving credit facility under which Hologic can borrow up to $1.5 billion. The revolver has the following sublimits:

  • A sublimit equal to the lesser of (x) $200 million and (y) the aggregate revolving commitments which may be drawn by Hologic UK
  • A sublimit equal to the lesser of (x) $200 million and (y) the aggregate revolving commitments which may be drawn by certain subsidiaries of Hologic to the extent designated as a borrower under the amended agreement
  • A letter of credit sublimit equal to the lesser of (x) $100 million and (y) the aggregate revolving commitments
  • A swing line sublimit equal to the lesser of (x) $50 million and (y) the aggregate revolving commitments.

On October 3, 2017, the company borrowed $345 million under the revolver. This initial borrowing, together with the net proceeds of the term loan, were used to refinance in full the term loan and revolver outstanding balances under the company’s 2015 credit agreement as well as pay for fees and expenses of the refinancing. Any excess cash received may be used for the repurchase of the company’s outstanding convertible notes and to provide working capital financing and funds for other general corporate and permitted purposes.

Hologic is a developer, manufacturer and supplier of diagnostic products, medical imaging systems and surgical products.