STERIS Refinances $1.6B Revolver and Enters $500M Delayed Draw Term Loan for Acquisition

Overview

On November 4, 2026, STERIS plc announced two key debt financing agreements via Form 8-K:

1. New Revolving Credit Agreement: A $1.60 billion unsecured revolving credit facility replacing its prior October 7, 2024 credit agreement.
2. Delayed Draw Term Loan Agreement: A new delayed draw term loan credit facility of up to $500 million earmarked to finance the acquisition of Xodus Medical, Inc.

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Key Terms of New Revolving Credit Agreement

• Facility Size: $1.60 billion (with an incremental increase accordion option of up to $800 million).
• Maturity: November 4, 2031 (5-year tenor).
• Initial Draw: Zero borrowings incurred on the closing date to replace the prior facility.
• Pricing: Base Rate or Relevant Rate plus an Applicable Margin determined by STERIS's credit ratings.
• Alternative Currencies: Allows multi-currency advances up to an aggregate equivalent of $625 million.
• Administrative Agents: JPMorgan Chase Bank, N.A. and J.P. Morgan SE.

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Key Terms of Delayed Draw Term Loan Agreement

• Facility Size: Up to $500 million.
• Purpose: Funding the acquisition of Xodus Medical, Inc. (commitments terminate if the acquisition is terminated or outside date is reached).
• Maturity: 5 years following the closing date of the Xodus Medical acquisition.
• Amortization Schedule:
  • Year 1: No principal payments due.
  • Years 2–3: 1.25% of initial drawn principal per quarter.
  • Years 4–5: 1.875% of initial drawn principal per quarter.
  • Maturity: Remaining principal balance due.

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Financial & Strategic Impact

• Refinancing & Extended Runway: Extends the company's revolving liquidity through late 2031 under investment-grade-style terms.
• Acquisition Flexibility: Dedicated $500M term loan facility provides funded debt capacity for the Xodus Medical transaction without drawing down the main revolver.