STERIS Lines Up $1.6 Billion Revolver And A $500 Million Loan Reserved For Xodus Deal
The new revolver replaces a 2024 facility, while the term loan can be drawn only if the Xodus Medical acquisition closes.
STERIS, which sells infection-prevention products and services, signed a new $1,600 million revolving credit facility and a separate term loan of up to $500 million that it can use only if its Xodus Medical acquisition closes, according to an 8-K filed Wednesday.
A five-year revolver replaces the 2024 line
The new revolver matures on November 4, 2031 and replaces the credit agreement dated October 7, 2024. No money was borrowed at signing to refinance the old facility, the company said in the filing.
Commitments can be raised by up to $800 million, subject to customary conditions. Borrowings in currencies other than dollars are capped in total at the equivalent of $625 million.
Interest is set off either a base rate or a benchmark rate, plus a margin that depends on STERIS's debt rating. Covenants limit leverage and require minimum interest coverage.
Certain defaults on other debt above the greater of $150 million or 3% of consolidated total assets let lenders accelerate repayment under the agreement.
A term loan that waits on Xodus
The delayed draw term loan cannot be used unless, among other conditions, the Xodus Medical acquisition is completed. Its commitments end if that deal is validly terminated or the specified outside date passes.
Once drawn, the loan matures five years after the closing date. No principal is due in the first year. Quarterly payments of 1.25% of the amount outstanding at closing come due in years two and three, rising to 1.875% in years four and five, with the remainder due at maturity.
The borrower is STERIS Irish FinCo Unlimited Company, with STERIS and two subsidiaries as guarantors. Every lender on the term loan also sits on the revolver.
Who STERIS is
STERIS reports three segments: Healthcare, Applied Sterilization Technologies and Life Sciences. Its products range from detergents and endoscopy accessories to sterilizers and surgical tables, plus maintenance, instrument repair and contract sterilization services.
Its capital equipment backlog stood at $490.7 million on March 31, 2026, the end of its fiscal year.
The term loan's $500 million becomes available only if the Xodus Medical deal closes.
Sources
- 8-K Filing — STERIS plc (STE) — SEC EDGAR
