BofA Agents New Varian Credit Agreement
Varian Medical Systems entered into a credit agreement with BofA of up to $500 million. Merrill Lynch, Pierce, Fenner & Smith, Sumitomo Mitsui and Wells Fargo are joint lead arrangers. Merrill Lynch is the sole bookrunner, and Sumitomo and Wells Fargo are co-syndication agents and co-documentation agents. The credit agreement provides for a five-year term loan facility in an aggregate principal amount of up to $500 million and a five-year revolving credit facility in an aggregate principal amount of up to $300 million.
The revolving credit facility also includes a $50 million sub-facility for the issuance of letters of credit and permits swing line loans of up to $25 million. Under the credit agreement, the company has the right to make up to two requests to increase the aggregate commitments under the term loan facility by an aggregate amount for all such requests of up to $100 million and up to three requests to increase the aggregate commitments under the revolving credit facility by an aggregate amount for all such requests of up to $200 million, provided that the lenders are willing to provide such new or increased commitments and certain other conditions are met.
The credit facility replaces the prior credit facility with Bank of America.
Palo Alto, CA-headquartered Varian Medical Systems is a manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy, and brachytherapy.