QuidelOrtho Corporation entered into Amendment No. 1 to its existing credit agreement on September 23, 2026. The amendment, agreed upon with Bank of America, N.A. as administrative agent and other lenders, adjusts the company's financial covenant levels through the fiscal quarter ending September 30, 2029.
The amendment establishes a specific schedule for the maximum Consolidated Leverage Ratio and the minimum Consolidated Interest Coverage Ratio for each measurement period during the Covenant Relief Period:
- On or prior to July 2, 2028: Minimum Interest Coverage Ratio of 2.25 to 1.00; Maximum Leverage Ratio of 5.50 to 1.00.
- On October 1, 2028 or December 31, 2028: Minimum Interest Coverage Ratio of 2.50 to 1.00; Maximum Leverage Ratio of 5.00 to 1.00.
- On April 1, 2029 or July 1, 2029: Minimum Interest Coverage Ratio of 2.75 to 1.00; Maximum Leverage Ratio of 4.50 to 1.00.
- On or after September 30, 2029: Minimum Interest Coverage Ratio of 3.00 to 1.00; Maximum Leverage Ratio of 4.25 to 1.00.
The amendment also modifies the interest rates applicable to the Term Loan A Facilities and the Revolving Credit Facility during the Covenant Relief Period. The initial interest rate for these facilities from the amendment's effective date until the first business day after the compliance certificate for the fiscal quarter ending September 28, 2026 is received is 1.50% per annum for base rate loans and 2.50% per annum for Term SOFR rate loans. Following this initial period, rates will be determined by a pricing grid ranging from 0.75% to 2.00% per annum for base rate loans and from 1.75% to 3.00% per annum for Term SOFR rate loans.
The Company will also pay a commitment fee on the unused portion of the Credit Agreement during the Covenant Relief Period, ranging from 0.20% to 0.40% per annum based on its Consolidated Leverage Ratio. The interest rates for Term Loan B remain unchanged. The Financing is secured by liens on substantially all assets of the Company and its material domestic subsidiaries, excluding real property and certain other excluded assets.
