Latham & Watkins Advises Initial Purchasers in Varex’s US$175 Million Convertible Senior Notes Offering

Varex Imaging, Corp., a leading innovator, designer, and manufacturer of X-ray imaging components, has announced the pricing of its offering of US$175 million aggregate principal amount of its 4% Convertible Senior Notes due 2025 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. In connection with the offering, Varex granted the initial purchasers a 13-day option to purchase, for settlement within a period of 13 days from, and including, the date notes are first issued, up to an additional US$25 million aggregate principal amount of notes. Varex estimates that the net proceeds from the offering will be US$169 million (or US$193.3 million if the initial purchasers exercise their option to purchase additional notes in full), after deducting the initial purchasers’ discounts and commissions and estimated offering expenses. The offering is expected to close on June 9, 2020, subject to customary closing conditions.

Latham & Watkins LLP represented the initial purchasers in the offering with a corporate team led by New York partner Greg Rodgers and Orange County partners Shayne Kennedy and Michael Treska, with associates Andrew Blumenthal, Denis Griffin, Traci Biedermann, and Regan Devers. Advice was also provided on equity derivatives matters by New York partner Reza Mojtabaee-Zamani, with associate Christopher Yu; and on tax matters by New York partner Elena Romanova, with associate Lea Li.