MASIMO CORPMASI
MASIMO CORP Debt Disclosure
15. Debt
| (in millions) | January 3, 2026 | December 28, 2024 | |||||||||
| Term loan - current portion | $ | 6.3 | $ | 15.0 | |||||||
| Short-term debt | 6.3 | 15.0 | |||||||||
| Revolver - long-term | 280.0 | 456.0 | |||||||||
| Term loan - long-term | 238.0 | 258.3 | |||||||||
| Long-term debt | 518.0 | 714.3 | |||||||||
| Total debt | $ | 524.3 | $ | 729.3 | |||||||
2022 Credit Facility
On April 11, 2022, the Company entered into an unsecured credit agreement (the 2022 Credit Facility) with financial institutions as initial lenders, Citibank, N.A., as Administrative Agent, Citibank, N.A., JPMorgan Chase Bank, N.A., Bank of the West and BofA Securities, Inc., as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A., Bank of the West and BofA Securities, Inc., as co-syndication agents.
The 2022 Credit Facility provided a $300.0 million term loan (the 2022 Term Loan) and $500.0 million of in revolving commitments, with an accordion feature allowing for up to $400.0 million in additional commitments, (plus unlimited amounts if certain incurrence tests were met), subject to certain conditions. The Company recorded debt issuance costs of $8.4 million as a reduction to the carrying amount of the 2022 Credit Facility, and amortized them to interest expense using the straight-line amortization method.
On September 23, 2025, the Company repaid the $270.0 million outstanding balance on the 2022 Term Loan balance and recorded a charge of $0.9 million for the associated unamortized debt issuance costs.
2025 Credit Facility
On December 1, 2025, the Company entered into a five-year unsecured credit agreement (the 2025 Credit Facility) with financial institutions as initial lenders, Bank of America, N.A. as Administrative Agent. BofA Securities, Inc., JPMorgan Chase Bank, N.A., Citibank, N.A., U.S. Bank National Association, and PNC Capital Markets LLC as joint lead arrangers and joint bookrunners. BofA Securities, Inc., JPMorgan Chase Bank, N.A., Citibank, N.A., U.S. Bank National Association, and PNC Bank National Association as co-syndication agents. BMO Bank N.A., DNB Bank ASA, New York Branch, and KeyBank National Association as co-documentation agents.
The 2025 Credit Facility consists of a $250.0 million term loan (the Term Loan) and a $750.0 million revolving credit facility (the Revolver), with an accordion feature allowing for up to $400.0 million in additional commitments (plus unlimited amounts if certain incurrence tests are met), subject to certain conditions. The 2025 Credit Facility includes a $50.0 million letter of credit sublimit, and matures on December 1, 2030.
The Company recorded a charge of $0.4 million for debt issuance costs related to lenders that did not continue from the 2022 Credit Facility, and recorded debt issuance costs of $4.6 million as a reduction to the carrying amount of the 2022 Credit Facility and amortized them to interest expense using the straight-line amortization method.
The Company used initial proceeds from the Term Loan and Revolver to pay off the remaining obligations under the 2022 Credit Facility and related fees. Subsequent Revolver borrowings will be used for general corporate purposes.
Borrowings under the 2025 Credit Facility will bear interest, at the Company’s election, at either: (a) an Alternate Base Rate (ABR) Loan, plus a spread of 0.000% to 0.750%, or (b) a Term SOFR Loan plus a spread of 1.000% to 1.750%, based on the Company’s net leverage ratios as set forth in the 2025 Credit Facility. ABR equals, for any day, a fluctuating rate per annum equal to the highest of (a) the Federal Funds Effective Rate plus 1/2 of 1%, (b) Bank of America’s prime rate, (c) Term SOFR plus 1.00%, or (d) a floor of 0.00%. Term SOFR equals the Term SOFR Screen Rate (as defined in the 2025 Credit Facility) for the applicable interest period, with a 0% floor. As of January 3, 2026, the effective interest rate on the 2025 Credit Facility was 4.7%.
The Company pays an unused fee ranging from 0.150% to 0.275% per annum on the unutilized Revolver balance, based on the Company’s net leverage ratios under the 2025 Credit Facility.
The 2025 Credit Facility contains financial covenants related to a net leverage ratio and an interest coverage ratio, and customary negative covenants, affirmative covenants, representations and warranties, and events of default. Upon any event of default, the Administrative Agent may, and at the request of required lenders shall take either or both of the following actions: (a) immediately terminate the commitments, or (b) declare the outstanding loans immediately due and payable in full.
The Company was in compliance with all covenants related to the 2025 Credit Facility as of January 3, 2026.
As of January 3, 2026, the Company had approximately $467.6 million of available borrowing capacity (net of approximately $2.4 million in outstanding letters of credit) under the Credit Facility.
For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, the Company incurred total interest expense of $33.2 million, $41.2 million and $47.1 million, respectively, under the Credit Facilities.
As of January 3, 2026, the aggregate maturities of principal on the Credit Facility for each of the next five years and thereafter are as follows:
Fiscal year | Amount (in millions) | ||||
| 2026 | $ | 6.3 | |||
| 2027 | 6.3 | ||||
| 2028 | 6.3 | ||||
| 2029 | 6.3 | ||||
| 2030 | 499.1 | ||||
| Thereafter | 0.0 | ||||
| Total | $ | 524.3 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 27, 2026 | Showing above |
| 2016 | Feb 24, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.