Varian Medical Systems eyes up to $800 million senior credit facility

By Marisa Wong

Madison, Wis., July 25 - Varian Medical Systems, Inc.'s board of directors authorized on July 24 the syndication of a new senior credit facility for up to $800 million, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA has offered to be the administrative agent for the new credit facility.

The planned facility will consist of an up to $500 million five-year term loan, subject to an up to $100 million increase, and an up to $300 million five-year revolver, including subfacilities for letters of credit and swingline loans and subject to an up to $200 million increase.

The new facility's covenants will be similar to those of the company's existing $300 million revolver, the filing noted.

Varian said it has not yet entered into definitive documents relating to the new facility.

The company expects to use the new facility to refinance and replace its existing revolver and for all general corporate purposes including working capital uses, acquisitions and share repurchases.

Based in Palo Alto, Calif., Varian creates cancer treatment technology.

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