Varex Imaging Corporation (NASDAQ: VREX) completed a debt refinancing transaction that includes $490 million in new credit facilities and the redemption of $368 million in senior secured notes.

The company entered into a credit agreement dated March 13, 2026, comprising a $350 million secured term loan, a $100 million revolving credit facility, and a $40 million delayed draw term loan facility. The new facilities mature on March 13, 2031. Zions Bancorporation served as lead arranger and will act as administrative and collateral agent.

Varex deposited funds with a trustee to redeem its outstanding 7.875% Senior Secured Notes due 2027, with redemption occurring on March 16, 2026. The company also terminated its previous $155 million revolving credit facility.

The new borrowings carry variable interest rates based on the Secured Overnight Financing Rate plus an applicable margin determined by the company's consolidated net leverage ratio. Varex entered into an interest rate swap converting the variable SOFR component to a fixed rate of 3.65%. The current applicable margin stands at 2.50%.

The refinancing required approximately $42 million in cash, including an $18 million net debt reduction, $7 million in call premiums, $12 million in accrued interest on redeemed notes, and $5 million in transaction fees.

"We expect that the reduced debt and lower interest rate will improve financial flexibility, support improved free cash flow generation and enable continued investment in our core business," said Sam Maheshwari, chief financial officer.

The company projects the refinancing will reduce annualized cash interest expense by more than $7 million through lower interest rates and the debt reduction. Additional details are available in Varex's Form 8-K filing with the Securities and Exchange Commission.

The Salt Lake City-based company manufactures X-ray imaging components and systems for medical, industrial, and security applications.