Bausch & Lomb Corp (NYSE:BLCO), a leading company in ophthalmic goods, has entered into an amendment to its existing credit agreement, securing $400 million in new term loans, according to a recent SEC Form 8-K filing. The amendment, effective today, involves subsidiaries of the company as subsidiary guarantors, the lenders party to the agreement, and JPMorgan Chase (NYSE:JPM) Bank, N.A., as the administrative agent.
The newly acquired Second Incremental Term Loans, which will mature on May 10, 2027, are set to amortize quarterly starting from the fiscal quarter ending March 31, 2025. Initial installments will be 0.625% of the principal amount, increasing to 1.875% thereafter until maturity. The funds will be utilized partly to repay outstanding revolving loans and the rest for general corporate purposes.
Interest rates on these loans will vary. Borrowers can choose between a base rate determined by several benchmarks, including The Wall Street Journal's "Prime Rate," or term SOFR plus an applicable margin. Interest margins are set at 2.25% for base rate borrowings and 3.25% for term SOFR borrowings.
This strategic financial move comes as Bausch & Lomb continues to navigate the competitive landscape of the ophthalmic goods industry. The terms of the original credit agreement remain largely unchanged except for the provisions introduced by this second amendment.
Investors and market watchers will note that this transaction reflects Bausch & Lomb's proactive approach to managing its capital structure and liquidity needs. The transaction is based on a press release statement and provides a clear example of how corporations engage in financial restructuring to optimize their financial resources.
The details of the Second Incremental Amendment, as filed with the SEC, indicate that Bausch & Lomb is taking steps to ensure it has the financial flexibility to meet its obligations and invest in its future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.