Hologic, Inc. Together with Certain of its Subsidiaries Enters into Refinancing Amendment No. 2 to its Amended and Restated Credit and Guaranty Agreement
September 27, 2021 at 04:34 pm EDT
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On September 27, 2021, Hologic, Inc. together with certain of its subsidiaries, refinanced its term loan and revolving credit facility by entering into Refinancing Amendment No. 2 (the “Refinancing Amendment”) to its Amended and Restated Credit and Guaranty Agreement, dated as of October 3, 2017, as amended (the “Original Credit Agreement”), with Bank of America, N.A., in its capacity as Administrative Agent, and certain other lenders from time to time party thereto. The Original Credit Agreement, as amended by the Refinancing Amendment, is referred to herein as the “Amended Credit Agreement.” The Amended Credit Agreement (i) includes a $1.5 billion senior term loan and a $2.0 billion revolving credit facility, (ii) extends the maturity of these facilities to September 25, 2026, (iii) reduces the interest rate margins under both facilities and the commitment fee under the revolver, (iv) includes certain amendments in connection with the prospective discontinuation of LIBOR and (v) provides additional flexibility under certain covenants. Hologic, Hologic GGO 4 Ltd. and Hologic UK Finance LTD remain as the borrowers (the “Borrowers”) under the Amended Credit Agreement, and the Borrowers’ obligations under the Amended Credit Agreement remain guaranteed by certain domestic subsidiaries of the Company (the “Subsidiary Guarantors”). The Hologic subsidiaries that are or become Borrowers under the Amended Credit Agreement are referred to as “Designated Borrowers.” The obligations of the Borrowers are secured by first-priority liens on, and a first-priority security interest in (in each case subject to certain liens permitted under the Amended Credit Agreement), substantially all of the U.S. assets of Hologic and the Subsidiary Guarantors, including, with certain exceptions, all of the capital stock of substantially all of the domestic subsidiaries owned by the Company and the Subsidiary Guarantors and 65% of the capital stock of certain of the Company’s first-tier foreign subsidiaries. The security interests are evidenced by a pledge and security agreement with Bank of America, N.A., in its capacity as Collateral Agent, and other related agreements. These liens are subject to release during the term of the facilities if the Company is able to achieve certain corporate or corporate family ratings and other conditions are met. Under the Refinancing Amendment, each lender converted their commitments under the Original Credit Agreement into new credit facilities (the “Refinanced Credit Facilities”) as follows: A $1.5 billion secured term loan (the “Term Loan”) to Hologic maturing on September25, 2026 (the “Stated Maturity Date”); and A secured revolving credit facility (the “Revolver”) under which the Borrowers may borrow up to $2.0 billion, subject to certain sublimits, with a final maturity date of the Stated Maturity Date.
Hologic, Inc. is the world leader in the design, manufacturing and marketing of diagnostic products, medical imaging systems and surgical products dedicated to women's health. Net sales break down by area of application as follows:
- molecular diagnostics (46.7%): rapid diagnostic tests for human diseases detection (sexually transmitted infections, respiratory diseases, viral diseases, infectious diseases, cancers of the cervix and prostate, etc.) and fetal fibronectin;
- breast health (35.5%): digital mammography and breast biopsy solutions and systems;
- gynecological surgery (15%): endometrial ablation devices, minimally invasive intervention systems for the hysteroscopic elimination of targeted intrauterine diseases (including fibroids and polyps). The group also offers fluid management systems for use in hysteroscopic procedures;
- bone health (2.8%): bone imaging systems, bone sonometers and osteodensitometers for bone structure and density, and osteoporotic fractures risk assessment.
Net sales break down by source of revenue between sales of products (81.4%) and services (18.6%).
Net sales are distributed geographically as follows: the United States (75.9%), Europe (12.9%), Asia/Pacific (6.3%) and other (4.9%).
Hologic, Inc. Together with Certain of its Subsidiaries Enters into Refinancing Amendment No. 2 to its Amended and Restated Credit and Guaranty Agreement