Varex Imaging Corporation to Redeem Its 7.875% Senior Secured Notes Due 2027

Key Terms

senior secured notes financial

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

redemption price financial

The redemption price is the amount of money a person receives when they sell or redeem a bond or investment before it matures. It’s important because it determines how much you get back and can affect your overall profit or loss on the investment. Think of it like the price you get when returning a gift card early—it's the value you receive at that time.

principal amount financial

The principal amount is the original sum of money that is borrowed, lent, or invested before any interest, fees, or returns are added. It matters to investors because interest charges, scheduled repayments, and total return are calculated from that base amount — think of it as the price tag on which future costs or gains are built. Knowing the principal helps you compare deals and predict cash flows and risk.

credit facility financial

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

Depository Trust Company financial

A central securities depository that holds stocks, bonds and other securities in electronic form and handles the transfer and finalizing of trades between brokerages. For investors it acts like a secure electronic vault and central bookkeeping hub that speeds transactions, reduces the chance of lost or duplicated certificates, and determines whether holdings are eligible for trading, dividends and other corporate actions through your broker.

trustee financial

A trustee is a person or institution legally appointed to hold and manage assets or enforce an agreement on behalf of other people (beneficiaries). Think of a trustee as a neutral referee or custodian who must act in the beneficiaries’ best interests, follow the trust or contract rules, and handle distributions, recordkeeping and enforcement. Investors care because a trustworthy trustee protects their rights, ensures promised payments or remedies are delivered, and can influence recoveries if things go wrong.

collateral agent financial

A collateral agent is a neutral third party that holds and manages the assets pledged to secure a loan on behalf of a group of lenders, acting like the keyholder to a shared safe. If the borrower falls behind, the collateral agent enforces the lenders’ rights and coordinates who gets what, which affects how quickly and how much lenders can recover. Investors care because the agent’s role shapes recovery prospects, enforcement speed and the clarity of lenders’ claims.

paying agent financial

A paying agent is a bank or company that helps deliver payments, like interest or dividends, to investors. It’s like a trusted middleman who makes sure everyone gets their money on time, so investors don’t have to handle the details themselves.

 

SALT LAKE CITY--(BUSINESS WIRE)-- Varex Imaging Corporation (Nasdaq: VREX) (the “Company” or “Varex”) today announced it has issued a notice of conditional full redemption of all of its outstanding 7.875% senior secured notes due October 15, 2027 (the “Notes”) on March 16, 2026 (the “Redemption Date”).

The aggregate principal amount of the outstanding Notes is $368,000,000. The redemption price for the Notes will be equal to 101.969% of the principal amount of the Notes, together with accrued and unpaid interest on the Notes to, but not including the Redemption Date, for a total payment to holders of $1,052.72125 per $1,000 principal amount of the Notes.

The Company intends to fund the redemption of the Notes with proceeds from the funding of a new credit facility to be entered into between or among the Company and one or more lenders (the “New Financing”) and cash on hand. In accordance with the terms of the indenture governing the Notes, the obligation of the Company to redeem the Notes and pay the redemption price to the holders of the Notes on the Redemption Date is subject to consummation of the New Financing that will provide sufficient funds to pay the redemption price (the “Financing Condition”) and the Redemption Date may be delayed until the Financing Condition has been satisfied or waived by the Company. If the Financing Condition is not satisfied, the Company may elect to rescind the notice of conditional full redemption and terminate the redemption. If the Redemption Date is extended or the redemption is terminated, the Company will provide notice to holders of the Notes on the second business day immediately preceding the Redemption Date.

Assuming satisfaction or waiver by the Company of the Financing Condition, on and after the Redemption Date, the Notes will no longer be deemed outstanding, interest will cease to accrue thereon, and all rights of the holders of the Notes will cease, except for the right to receive the redemption price.

Payment of the redemption price for the Notes will be made in accordance with the applicable procedures of the Depository Trust Company.

Computershare Trust Company, N.A. is the trustee, collateral agent, paying agent and registrar of the Notes.

This press release is for information purposes only and shall not constitute a notice of redemption. The conditional redemption shall be made solely pursuant to the official notice of conditional full redemption required under the indenture governing the Notes, which notice shall be provided by the trustee on behalf of the Company. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the Notes or any other securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Varex

Varex Imaging Corporation is a leading innovator, designer, and manufacturer of X-ray imaging components, which include X-ray tubes, digital detectors, and other image processing solutions that are key components of X-ray imaging systems, as well as X-ray imaging systems for industrial applications. With a 70+ year history of successful innovation, Varex’s products are used in medical imaging as well as in industrial and security imaging applications. Global OEM manufacturers incorporate the company’s X-ray sources, digital detectors, connecting devices, and imaging software in their systems to detect, diagnose, protect, and inspect. Headquartered in Salt Lake City, Utah, Varex employs approximately 2,400 people located in North America, Europe, and Asia. For more information visit vareximaging.com.

Forward-Looking Statements

Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “expect,” “anticipate,” “can,” “should,” “would,” “could,” “estimate,” “may,” “intend,” “potential,” and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s expectations, estimates, assumptions, and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially include the inability of the Company to successfully complete the New Financing or to otherwise satisfy or waive the Financing Condition, as well as other risks set forth as risk factors in the Company’s filings with the Securities and Exchange Commission, including its Quarterly and Annual Reports. The Company cautions you not to place undue reliance on the forward-looking statements contained in this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260306169746/en/

For Information Contact:

Christopher Belfiore

Director of Investor Relations

Varex Imaging Corporation

801.973.1566 | investors@vareximaging.com

Source: Varex Imaging Corporation