Varian Medical says JPMorgan will assume $45 million portion of loan

By Angela McDaniels

Tacoma, Wash., June 16 – Varian Medical Systems, Inc., through its Swiss subsidiary, entered into a series of agreements on June 10 under which JPMorgan Chase Bank, NA will assume $45 million of a $115.3 million loan to the company, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan purchased $38.1 million of the company’s outstanding loan and is obligated to fund up to an additional $6.9 million of the remaining loan commitment.

The company entered into the loan commitment to fund the development, construction and initial operations of the Scripps Proton Therapy Center in San Diego.

The company also assigned a pro rata portion of its revenue share from the Scripps Proton Therapy Center to JPMorgan.

Concurrent with these agreements, the company amended its loan agreement with California Proton Treatment Center, LLC to extend the maturity to Sept. 30, 2017, increase the interest rate to Libor plus 700 basis points and increase the company’s loan commitment by $10 million.

The additional $10 million will be subordinated to the original $115.3 million commitment in the event of a default.

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

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