WALTHAM, MA – Revvity, Inc. (Market cap: $14.16 billion), a Massachusetts-based company specializing in laboratory analytical instruments, announced today it has entered into a $1.5 billion unsecured revolving credit facility, which will be available until January 7, 2030. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.56, indicating robust financial health. The agreement with Bank of America, N.A. as the Administrative Agent, along with other lenders, replaces the previous credit agreement dated August 24, 2021.
The new credit facility offers Revvity and its subsidiary, Revvity Health Sciences, Inc., increased financial flexibility by extending the maturity date from August 24, 2026, to January 7, 2030. The arrangement involves several major financial institutions acting as Syndication Agents and Joint Lead Arrangers, including JPMorgan Chase (NYSE:JPM) Bank, N.A., Goldman Sachs Bank USA, PNC Bank, National Association, and Wells Fargo (NYSE:WFC) Bank, National Association.
The terms of the credit facility allow Revvity to borrow at either a base rate or a term SOFR rate, plus a spread that varies with the company's credit rating. The agreement also includes customary covenants and events of default, with specific conditions related to Revvity's debt-to-capitalization ratio, provided its debt maintains an Investment Grade rating. If this rating is not sustained, leverage ratio and interest coverage ratio covenants will come into effect.
As of today, Revvity has reported no borrowings under the new credit facility but has $4.2 million in outstanding letters of credit. The proceeds from the facility are earmarked for various corporate purposes, including working capital, capital expenditures, equity repurchases, dividends, acquisitions, and payment of expenses related to the new agreement and the termination of the prior one. With a moderate debt-to-equity ratio of 0.42 and total debt of $3.32 billion, InvestingPro analysis reveals the company has maintained prudent leverage levels while pursuing growth opportunities.
Concurrent with the establishment of the new credit facility, Revvity has terminated the previous credit agreement, under which there were no borrowings and $4.2 million of letters of credit outstanding at the time of its cessation.
The financial relationships between Revvity and the parties involved in both the terminated and the newly established credit agreements have been ongoing. This strategic financial move is detailed in an 8-K filing with the Securities and Exchange Commission, based on a press release statement from the company. Trading near $116.60 and close to its 52-week high of $129.50, InvestingPro's Fair Value analysis suggests the stock may be slightly overvalued at current levels. Investors seeking deeper insights into Revvity's financial health and growth prospects can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Reverty's third quarter of 2024 financial results displayed strong performance, with total adjusted revenues of $684 million, marking a 2% organic growth. The company's operational efficiency led to an 80 basis point rise in adjusted operating margins, standing at 28.3%, and generated a substantial $135 million in free cash flow. Reverty's earnings per share (EPS) surpassed expectations, leading to an increase in the full-year guidance for adjusted EPS. A new $1 billion share repurchase plan was also revealed.
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