OSI Systems entered into an amendment to its senior secured credit facility that increases the aggregate amount available from $535 million to $750 million. The amended facility is comprised of a $600 million revolving credit facility and a $150 million delayed draw term loan. The amendment also increases the flexibility of certain provisions and extends the maturity from April 2024 to December 2026.
Wells Fargo Securities, BofA Securities and JPMorgan Chase Bank served as joint lead arrangers and joint bookrunners for the facility, while Wells Fargo Bank is the administrative agent.
“We are pleased to successfully complete this refinancing at very attractive pricing to facilitate continued growth while simultaneously providing enhanced options for our convertible notes maturing September 2022,” Alan Edrick, executive vice president and CFO of OSI Systems, said. “This transaction illustrates the strength of our business and the continued strong support from our lenders.”
The revolver and the term loan are each priced in accordance with OSI Systems’ prior low-cost interest rate grid. As of the amendment date, borrowings under the revolving credit facility bore interest at the rate of LIBOR plus 1%. The term loan was not funded at closing and is available to OSI Systems to draw through Sept. 1, 2022, and, if drawn, will mature concurrently with the revolving credit facility. OSI Systems may prepay the revolver and the term loan at any time without penalty.
