OSI Systems entered into an amendment to its senior secured credit facility that increases the amount available from $450 million to $525 million. The amendment also lowers borrowing costs, extends the maturity from May 2019 to December 2021, and increases the flexibility of certain restrictive covenants, including provisions related to permitted acquisitions, incurrence of additional indebtedness, and restricted payments.
Wells Fargo Securities (WFS) and Merrill Lynch served as joint lead arrangers. WFS, Merrill Lynch, Pierce, Fenner & Smith and JPMorgan Chase served as joint bookrunners. Wells Fargo will serve as the administrative agent on the facility.
Alan Edrick, EVP and CFO, stated, “We are pleased to complete this amendment to our credit facility, which includes a significant number of improved terms that provide us with a lower cost of capital and enhanced liquidity and flexibility to support our continued growth. The increased facility highlights the strong support from our lenders.”
Hawthorne, CA-based 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.