Varex Imaging Secures $490 Million Credit Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 16 2026
0mins
Should l Buy VREX?
Source: Newsfilter
- Credit Agreement Overview: Varex Imaging has entered into a $490 million Credit and Guaranty Agreement on March 13, 2026, which includes a $350 million secured term loan and a $100 million secured revolving credit facility, maturing in 2031, thereby enhancing the company's financial flexibility.
- Debt Redemption Plan: The company plans to redeem $368 million of its 7.875% Senior Secured Notes on March 16, 2026, using funds from the new credit agreement, which is expected to reduce annual cash interest expenses by over $7 million, significantly improving its financial position.
- Interest Rate Management Strategy: Varex has entered into an interest rate swap that effectively fixes the variable SOFR rate at 3.65%, with an applicable margin set at 2.50%, which will help lower financing costs and enhance future free cash flow generation capabilities.
- Strategic Investment Direction: The CFO stated that this financing will support continued investment in the core business while prioritizing long-term shareholder value, demonstrating the company's confidence and commitment to future growth.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy VREX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on VREX
Wall Street analysts forecast VREX stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 10.340
Low
16.00
Averages
17.00
High
18.00
Current: 10.340
Low
16.00
Averages
17.00
High
18.00
About VREX
Varex Imaging Corporation is a designer and manufacturer of X-ray imaging components, which include X-ray tubes, digital detectors and other image processing solutions that are key components of X-ray imaging systems. The Company’s segments include Medical and Industrial. Its Medical segment designs, manufactures, sells and services X-ray imaging components, including X-ray tubes, flat panel and photon-counting detectors and accessories, high-voltage connectors, image-processing software and workstations, 3D reconstruction software, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, and coolers. Its Industrial segment designs, develops, manufactures, sells, and services X-ray imaging products for use in a number of applications, including security applications for cargo screening at ports and borders, baggage screening at airports, and nondestructive testing, irradiation, and inspection applications used in a number of other verticals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Varex Imaging Secures $490 Million Credit Agreement
- Credit Agreement Overview: Varex Imaging has entered into a $490 million Credit and Guaranty Agreement on March 13, 2026, which includes a $350 million secured term loan and a $100 million secured revolving credit facility, maturing in 2031, thereby enhancing the company's financial flexibility.
- Debt Redemption Plan: The company plans to redeem $368 million of its 7.875% Senior Secured Notes on March 16, 2026, using funds from the new credit agreement, which is expected to reduce annual cash interest expenses by over $7 million, significantly improving its financial position.
- Interest Rate Management Strategy: Varex has entered into an interest rate swap that effectively fixes the variable SOFR rate at 3.65%, with an applicable margin set at 2.50%, which will help lower financing costs and enhance future free cash flow generation capabilities.
- Strategic Investment Direction: The CFO stated that this financing will support continued investment in the core business while prioritizing long-term shareholder value, demonstrating the company's confidence and commitment to future growth.
See More
Varex Imaging to Present at Upcoming Investor Conferences
- Investor Conference Schedule: Varex Imaging announced its participation in Oppenheimer's 36th Annual Healthcare, MedTech & Services Virtual Conference on March 17, 2025, at 10:40 AM ET, and the Sidoti Small Cap Virtual Conference on March 18, 2026, at 1:00 PM ET, showcasing the company's innovations and market outlook in medical imaging.
- Webcast Access: Investors can access the conferences via the company's website or provided webcast links, ensuring transparent communication with investors and enhancing market confidence.
- Company Background: Varex Imaging is a leading innovator in X-ray imaging components with over 70 years of successful innovation history, with products widely used in medical, industrial, and security imaging, demonstrating the company's deep technological expertise.
- Global Workforce Distribution: Varex employs approximately 2,400 people across North America, Europe, and Asia, showcasing its global operational capabilities and market reach, further solidifying its leadership position in the imaging industry.
See More
Varex Imaging Announces Conditional Redemption of Senior Secured Notes
- Redemption Notice Issued: Varex Imaging announced a conditional redemption of its outstanding $368 million 7.875% senior secured notes due October 15, 2027, set for March 16, 2026, at 101.969% of the principal, totaling $1,052.72125 per $1,000, reflecting proactive debt management.
- Funding Sources Identified: The company plans to fund the redemption through proceeds from a new credit facility and cash on hand, indicating a strategic approach to financing while showcasing confidence in future cash flows.
- Redemption Conditions Established: The execution of this redemption is contingent upon the completion of new financing; failure to meet this condition may lead to delays or rescission of the redemption notice, potentially impacting investor confidence.
- Interest Cessation: Once the redemption is completed, interest on the notes will cease to accrue after the redemption date, which will affect the company's financial statements, particularly in terms of debt cost management.
See More
Varex Imaging Reports Strong Q1 2026 Earnings with Growth in Industrial Segment
- Revenue Growth: Varex Imaging reported Q1 2026 revenue of $210 million, a 5% year-over-year increase, driven by strong cargo systems performance and a 17% rise in the Industrial segment, nearing the high end of guidance.
- Stable Medical Segment: The Medical segment contributed $145 million, accounting for 69% of total revenue, with continued strength in CT equipment and increased customer engagement around next-generation system designs, boosting market confidence despite past challenges.
- Optimistic Outlook: Management provided Q2 2026 revenue guidance of $210 million to $225 million, with non-GAAP EPS expected between $0.15 and $0.25, reflecting confidence in future demand, particularly in the Industrial sector.
- Inventory Management Challenges: Despite a net income of $2 million in Q1, inventory rose by $29 million to $328 million, prompting management to plan a reduction of $10 to $15 million in inventory over the next quarters to address potential market volatility.
See More
Varex Imaging to Announce Q1 Earnings on February 10
- Earnings Announcement Date: Varex Imaging is set to release its Q1 2023 earnings on February 10 after market close, with consensus EPS estimate at $0.13, reflecting a 50% year-over-year decline, and revenue estimate at $207.8 million, down 2.4% year-over-year, indicating challenges ahead for the company.
- Historical Performance Review: Over the past two years, Varex Imaging has beaten EPS estimates 63% of the time and revenue estimates 63% of the time, suggesting a degree of stability in its financial performance despite current pressures.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and one downward revision, while revenue estimates have experienced three upward revisions with no downward adjustments, reflecting market divergence and adjustments regarding the company's future performance.
- Industry Outlook: Varex Imaging outlines a stable outlook for China and targets growth in its industrial segment for 2026, indicating the company's pursuit of growth opportunities in the global market despite current financial data showing some strain.
See More
Wall Street Analysts Predict VAREX IMAGING (VREX) May Rise by 29.92%: Important Insights Before You Invest
Stock Performance and Analyst Predictions: VAREX IMAGING (VREX) shares have risen 3.2% recently, with Wall Street analysts projecting a mean price target of $15.33, suggesting a potential upside of 29.9%, although estimates vary significantly.
Skepticism Towards Price Targets: Investors are cautioned against relying solely on price targets for investment decisions, as analysts may set overly optimistic targets influenced by business relationships, despite some agreement indicating potential price movement.
Earnings Estimate Revisions: Analysts show growing optimism for VREX's earnings, with a 1% increase in the Zacks Consensus Estimate over the past month, which correlates with potential stock price movements.
Zacks Rank and Future Recommendations: VREX holds a Zacks Rank #2 (Buy), placing it in the top 20% of stocks based on earnings estimates, and Zacks Investment Research is preparing to release its top stock picks for 2026.
See More
Varex Imaging Secures $490 Million Credit Agreement
- Credit Agreement Overview: Varex Imaging has entered into a $490 million Credit and Guaranty Agreement on March 13, 2026, which includes a $350 million secured term loan and a $100 million secured revolving credit facility, maturing in 2031, thereby enhancing the company's financial flexibility.
- Debt Redemption Plan: The company plans to redeem $368 million of its 7.875% Senior Secured Notes on March 16, 2026, using funds from the new credit agreement, which is expected to reduce annual cash interest expenses by over $7 million, significantly improving its financial position.
- Interest Rate Management Strategy: Varex has entered into an interest rate swap that effectively fixes the variable SOFR rate at 3.65%, with an applicable margin set at 2.50%, which will help lower financing costs and enhance future free cash flow generation capabilities.
- Strategic Investment Direction: The CFO stated that this financing will support continued investment in the core business while prioritizing long-term shareholder value, demonstrating the company's confidence and commitment to future growth.
See More
Varex Imaging to Present at Upcoming Investor Conferences
- Investor Conference Schedule: Varex Imaging announced its participation in Oppenheimer's 36th Annual Healthcare, MedTech & Services Virtual Conference on March 17, 2025, at 10:40 AM ET, and the Sidoti Small Cap Virtual Conference on March 18, 2026, at 1:00 PM ET, showcasing the company's innovations and market outlook in medical imaging.
- Webcast Access: Investors can access the conferences via the company's website or provided webcast links, ensuring transparent communication with investors and enhancing market confidence.
- Company Background: Varex Imaging is a leading innovator in X-ray imaging components with over 70 years of successful innovation history, with products widely used in medical, industrial, and security imaging, demonstrating the company's deep technological expertise.
- Global Workforce Distribution: Varex employs approximately 2,400 people across North America, Europe, and Asia, showcasing its global operational capabilities and market reach, further solidifying its leadership position in the imaging industry.
See More
Varex Imaging Announces Conditional Redemption of Senior Secured Notes
- Redemption Notice Issued: Varex Imaging announced a conditional redemption of its outstanding $368 million 7.875% senior secured notes due October 15, 2027, set for March 16, 2026, at 101.969% of the principal, totaling $1,052.72125 per $1,000, reflecting proactive debt management.
- Funding Sources Identified: The company plans to fund the redemption through proceeds from a new credit facility and cash on hand, indicating a strategic approach to financing while showcasing confidence in future cash flows.
- Redemption Conditions Established: The execution of this redemption is contingent upon the completion of new financing; failure to meet this condition may lead to delays or rescission of the redemption notice, potentially impacting investor confidence.
- Interest Cessation: Once the redemption is completed, interest on the notes will cease to accrue after the redemption date, which will affect the company's financial statements, particularly in terms of debt cost management.
See More
Varex Imaging Reports Strong Q1 2026 Earnings with Growth in Industrial Segment
- Revenue Growth: Varex Imaging reported Q1 2026 revenue of $210 million, a 5% year-over-year increase, driven by strong cargo systems performance and a 17% rise in the Industrial segment, nearing the high end of guidance.
- Stable Medical Segment: The Medical segment contributed $145 million, accounting for 69% of total revenue, with continued strength in CT equipment and increased customer engagement around next-generation system designs, boosting market confidence despite past challenges.
- Optimistic Outlook: Management provided Q2 2026 revenue guidance of $210 million to $225 million, with non-GAAP EPS expected between $0.15 and $0.25, reflecting confidence in future demand, particularly in the Industrial sector.
- Inventory Management Challenges: Despite a net income of $2 million in Q1, inventory rose by $29 million to $328 million, prompting management to plan a reduction of $10 to $15 million in inventory over the next quarters to address potential market volatility.
See More
Varex Imaging to Announce Q1 Earnings on February 10
- Earnings Announcement Date: Varex Imaging is set to release its Q1 2023 earnings on February 10 after market close, with consensus EPS estimate at $0.13, reflecting a 50% year-over-year decline, and revenue estimate at $207.8 million, down 2.4% year-over-year, indicating challenges ahead for the company.
- Historical Performance Review: Over the past two years, Varex Imaging has beaten EPS estimates 63% of the time and revenue estimates 63% of the time, suggesting a degree of stability in its financial performance despite current pressures.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and one downward revision, while revenue estimates have experienced three upward revisions with no downward adjustments, reflecting market divergence and adjustments regarding the company's future performance.
- Industry Outlook: Varex Imaging outlines a stable outlook for China and targets growth in its industrial segment for 2026, indicating the company's pursuit of growth opportunities in the global market despite current financial data showing some strain.
See More
Wall Street Analysts Predict VAREX IMAGING (VREX) May Rise by 29.92%: Important Insights Before You Invest
Stock Performance and Analyst Predictions: VAREX IMAGING (VREX) shares have risen 3.2% recently, with Wall Street analysts projecting a mean price target of $15.33, suggesting a potential upside of 29.9%, although estimates vary significantly.
Skepticism Towards Price Targets: Investors are cautioned against relying solely on price targets for investment decisions, as analysts may set overly optimistic targets influenced by business relationships, despite some agreement indicating potential price movement.
Earnings Estimate Revisions: Analysts show growing optimism for VREX's earnings, with a 1% increase in the Zacks Consensus Estimate over the past month, which correlates with potential stock price movements.
Zacks Rank and Future Recommendations: VREX holds a Zacks Rank #2 (Buy), placing it in the top 20% of stocks based on earnings estimates, and Zacks Investment Research is preparing to release its top stock picks for 2026.
See More
