OSI Systems expands credit facility to $825 million

HAWTHORNE, Calif. - OSI Systems, Inc. (NASDAQ:OSIS), a $3.81 billion market cap company with annual revenue of $1.69 billion, announced Wednesday it has expanded and extended its senior secured credit facility, increasing the total borrowing capacity from $750 million to $825 million.

The amended facility consists of a $725 million revolving credit facility and a $100 million term loan. The maturity date has been extended from December 2026 to July 2030.

According to the company, the revised terms include a more favorable pricing structure and fewer restrictive covenants. The agreement also features an increased accordion feature.

"We are pleased to have completed this transaction, which enhances our liquidity and financial agility to support our growth strategy," said Alan Edrick, Executive Vice President and Chief Financial Officer of OSI Systems. The company maintains strong liquidity with a healthy current ratio of 2.11, according to InvestingPro data.

Wells Fargo Securities, LLC, BofA Securities, Inc., JPMorgan Chase Bank, N.A., and PNC Capital Markets LLC served as joint lead arrangers and joint bookrunners for the transaction. Wells Fargo Bank, National Association, will serve as the administrative agent.

OSI Systems designs and manufactures specialized electronic systems for homeland security, healthcare, defense, and aerospace industries. The company operates production facilities in more than a dozen countries.

The information in this article is based on a press release statement from OSI Systems.

In other recent news, OSI Systems, Inc. has been awarded a $56 million contract to supply security inspection equipment to an undisclosed international customer. This contract includes the Eagle® M60 ZBx and ZBV® Z Backscatter® systems, which are designed for port and border security applications. Additionally, OSI Systems secured a $47 million contract from a domestic customer for the maintenance of Rapiscan inspection systems, which are crucial for screening baggage, cargo, and vehicles. The company also announced an $11 million contract to provide radiation monitoring portals for European border security. Furthermore, OSI Systems received a $14 million contract for mobile cargo inspection systems and a $10 million order for its Eagle M60 ZBx mobile inspection system from international customers. These recent developments highlight OSI Systems’ ongoing expansion in the security sector, providing advanced inspection technologies to enhance security operations globally.

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