Varian Medical Systems terminated its August 27, 2013 credit facility and replaced it with a $600 million revolver with Bank of America as administrative agent.

The company repaid in full the approximately $364 million outstanding principal balance remaining under the prior facility.

Under the credit agreement, Merrill Lynch, Wells Fargo, Sumitomo Mitsui, Citibank, JPMorgan Chase, DNB Markets, Fifth Third, RBC Capital Markets and TD Bank are joint lead arrangers. Merrill Lynch is the sole bookrunner, and Wells Fargo, Sumitomo, Citibank, JPM, DNB, Fifth Third, Royal Bank of Canada and TD are co-syndication agents and co-documentation agents.

The credit agreement provides for a five-year revolving credit facility in an aggregate principal amount of up to $600 million. The 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.

The proceeds of the credit facility will be used for working capital, capital expenditures, permitted company share repurchases, permitted acquisitions and other lawful corporate purposes.

Borrowings under the credit facility accrue interest either based on the Eurodollar rate plus a margin of 1.125% to 1.875% based on the leverage ratio or  based upon a base rate of the federal funds rate plus 0.50%, Bank of America’s announced prime rate or the Eurodollar rate plus 1.00%, whichever is highest, plus a margin of 0.125% to 0.875% based on the leverage ratio, depending upon instructions from the company to the agent as to whether advances under the credit facility are to be based on the Eurodollar rate or the base rate.