QuidelOrtho amends credit agreement, resets financial covenants through 2029
The company's Amendment No. 1, signed September 23, 2026, adjusts leverage and interest coverage requirements and interim borrowing rates.
QuidelOrtho Corporation entered into Amendment No. 1 to its existing credit agreement on September 23, 2026, according to an 8-K filing. The amendment updates a credit agreement originally dated August 21, 2025, involving the company as borrower and Bank of America, N.A. serving as administrative agent and swing line lender, along with other lenders and letter-of-credit issuers.1
Under that credit agreement, the lenders had provided the company with a $1.15 billion senior secured term loan A facility, a $100.0 million senior secured delayed draw term loan A facility, a $1.45 billion senior secured term loan B facility, and a $700.0 million revolving credit facility.1
The amendment resets the company's financial covenant levels through the fiscal quarter ending September 30, 2029, described as the "Covenant Relief Period," establishing a maximum Consolidated Leverage Ratio and a minimum Consolidated Interest Coverage Ratio that tighten over time.1 The interest coverage minimum rises from 2.25 to 1.00 for quarters through July 2, 2028, up to 3.00 to 1.00 for quarters after September 30, 2029, while the leverage ratio ceiling falls from 5.50 to 1.00 down to 4.25 to 1.00 over the same span, per the filing's table.
On pricing, the filing states that from the amendment's effective date until shortly after the compliance certificate for the fiscal quarter ending September 28, 2026 is delivered, the applicable rate will run at 1.50% annually for base rate loans and 2.50% annually for loans tied to Term SOFR, after which rates will follow a grid tied to the company's leverage ratio, ranging from 1.75% to 3.00% for Term SOFR loans and 0.75% to 2.00% for base rate loans.1
During the Covenant Relief Period the company will also pay a commitment fee on unused credit ranging from 0.20% to 0.40% annually, while interest terms on the Term Loan B are unchanged by the amendment.1
The financing continues to be guaranteed by certain material domestic subsidiaries and secured by liens on substantially all assets of the company and those guarantors, excluding real property and other excluded assets.1 The amendment also adds further restrictions to the financial covenants during the relief period.1
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