Hologic announces new five-year secured credit agreement

Hologic has announced a five-year secured credit agreement, consisting of a $1.5 billion (982.17 million pounds) senior term loan and a $1 billion revolving credit facility.

The firm borrowed $0.175 billion against the new revolver initially, and used these proceeds and the term loan to pay off its previous senior secured term loans, with an aggregate principal amount of $1.69 billion outstanding at the end of March 2015.

Multiple bank lenders participated in this latest round of financing, which was led by Bank of America Merrill Lynch. The new loan facilities mature on May 29th 2020 and will shore up the company's financial position.

Bob McMahon, the company's chief financial officer, said: "This new credit agreement contributes to the continued transformation of Hologic's balance sheet. By refinancing the term loans, we reduce our interest expense and increase our financial flexibility, while extending our debt maturities."

He added that upsizing the company's revolver is expected to provide additional flexibility to retire its convertible notes when they become callable.

The firm recorded year-on-year growth of 4.9 percent during the second quarter of its 2015 business year, leading it to upwardly revise its guidance for the full year.