Varex Imaging Corp Files 8-K on Agreements and Obligations

Ticker: VREX · Form: 8-K · Filed: Mar 27, 2024 · CIK: 1681622

Sentiment: neutral

Topics: material-definitive-agreement, financial-obligation, agreement-termination

Related Tickers: VREX

TL;DR

Varex Imaging made major moves on contracts and debt today - big changes coming.

AI Summary

On March 26, 2024, Varex Imaging Corporation entered into a Material Definitive Agreement and also terminated a Material Definitive Agreement. The company also created a direct financial obligation or an obligation under an off-balance sheet arrangement. These events are detailed in the 8-K filing.

Why It Matters

This filing indicates significant changes in Varex Imaging's contractual and financial commitments, which could impact its future operations and financial health.

Risk Assessment

Risk Level: medium — The termination of one agreement and the creation of new obligations suggest potential shifts in the company's strategic direction or financial structure, warranting closer examination.

Key Players & Entities

FAQ

What was the nature of the Material Definitive Agreement entered into by Varex Imaging?

The filing indicates the entry into a Material Definitive Agreement, but the specific details of this agreement are not provided in the excerpt.

What was the reason for the termination of the Material Definitive Agreement?

The filing states that a Material Definitive Agreement was terminated, but the reasons for this termination are not specified in the provided text.

What type of financial obligation was created by Varex Imaging?

The filing mentions the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement, but the specifics are not detailed in the excerpt.

What is Varex Imaging Corporation's fiscal year end?

Varex Imaging Corporation's fiscal year ends on September 27 (0927).

What is Varex Imaging Corporation's Standard Industrial Classification code?

Varex Imaging Corporation's Standard Industrial Classification code is 3679, which corresponds to ELECTRONIC COMPONENTS, NEC.

Filing Stats: 1,427 words · 6 min read · ~5 pages · Grade level 12.9 · Accepted 2024-03-27 16:07:48

Key Financial Figures

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement On March 26, 2024 , Varex Imaging Corporation (the " Company "), Varex Imaging West, LLC (" VI West ") and Varex Imaging Deutschland AG (the " German Borrower " and together with the Company and VI West, the " Borrowers ") and certain guarantors party thereto (the " Guarantors ") entered into a senior secured revolving credit agreement, dated as of March 26, 2024 (the " Credit Agreement ") with Zions Bancorporation, N.A. DBA Zions First National Bank (" Zions "), as administrative and collateral agent, the lenders named therein, the issuing banks named therein, and Zions, as lead arranger and bookrunner, providing for a senior secured revolving credit facility of up to $155 million (the " Credit Facility "). Simultaneous with its entry into the Credit Facility, the Company terminated its senior secured asset-based revolving credit agreement, dated as of September 30, 2020, with Bank of America N.A., as administrative and collateral agent, and the lenders named therein, providing for the asset-backed lending facility (the " Existing Credit Facility "). As of March 26, 2024 , there was no principal balance outstanding on the Credit Facility. Availability, interest, and maturity . The maximum availability under the Credit Facility is $155 million available to the Borrowers for revolving loans in U.S. dollars and for the issuance of letters of credit. The Borrowers may make and repay borrowings from time to time until the maturity of the Credit Facility. The Borrowers may make voluntary prepayments of borrowings at any time. Borrowings under the Credit Facility will mature, and lending commitments thereunder will terminate, on September 26, 2027. The interest rate for revolving credit facility borrowings by Borrowers under the Credit Facility is the Secured Overnight Financing Rate ("SOFR") (subject to a floor of 0.0%) plus a margin of 2.00% to 2.75%, depending on the consolidated total net leverage ratio of the Com

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement On March 26, 2024 , the Company paid off and terminated the Existing Credit Facility. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth above in Item 1.01 is incorporated by reference into this Item 2.03.

01 Other Events

Item 8.01 Other Events. On March 27, 2024, the Company issued a press release announcing the closing of the Credit Facility. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference..

01 Financial Statement and Exhibits

Item 9.01 Financial Statement and Exhibits (d) Exhibits Exhibit No. Description 10.1 Credit Agreement dated as of March 26 , 2024, by and among Varex Imaging Corporation, Varex Imaging West, LLC, Varex Imaging Deutschland AG, the Guarantors party thereto and Zions Bancorporation, N.A. DBA Zions First National Bank, as administrative and collateral agent, and the lenders party thereto 99.1 Press Release dated March 27, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. VAREX IMAGING CORPORATION Dated: March 27, 2024 By: /s/ KIMBERLEY E. HONEYSETT Kimberley E. Honeysett Senior Vice President, Chief Legal Officer and Corporate Secretary

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