STERIS Signs $1.6B Revolver and $500M Xodus-Contingent Term Loan
STE sits 27% above its 52-week low of $195.14 on elevated volume (2.0× avg).
Summary
STERIS put in place a $1.6 billion revolver and a $500 million term loan that only funds if the $2.1 billion Xodus Medical acquisition closes, giving the deal committed bank financing.
Key Events · Financing and Capital Events · STE
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New $1.6B Revolver Replaces 2024 Facility
The five-year facility matures November 4, 2031, permits an $800 million commitment increase and caps alternative-currency advances at $625 million; no borrowings were incurred to refinance the existing agreement.
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$500M Term Loan Tied to Xodus Deal
The delayed draw term loan cannot be used unless the Xodus Medical acquisition is consummated, terminates if the deal is validly terminated or the outside date passes, and matures five years after the acquisition closing date.
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Leverage Covenant Steps Up Post-Deal
Both agreements require debt-to-EBITDA of no more than 3.50x and interest coverage of at least 3.00x, with the leverage limit rising 0.25x for four quarters after a material acquisition.
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Funding Covers Part of $2.1B Purchase Price
The $500 million term loan plus revolver capacity sits alongside the previously announced $2.1 billion cash price for Xodus Medical, with the remainder to come from cash, revolver draws or note issuance.
Analysis · STE · Industrial Applications And Services
STERIS has secured committed financing for its $2.1 billion cash acquisition of Xodus Medical without tapping the equity market. The $1.6 billion revolver replaces the October 2024 facility on essentially the same footprint, while the $500 million delayed draw term loan can only be drawn if the Xodus deal closes and matures five years after that closing. Together they cover roughly a quarter of the purchase price with committed bank debt, leaving the rest to be funded from cash, the revolver or notes. The trade-off is leverage: the facilities carry a 3.50x debt-to-EBITDA covenant that steps up by 0.25x for four quarters after a material acquisition, so the balance sheet has room but not unlimited room. No borrowings were drawn at closing of the revolver, so nothing here changes net debt today.
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In the 30 days to Nov 5, 2026, 33.4% of the 2397 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, STE was trading at $247.91 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $24.2B. The 52-week trading range was $195.14 to $269.44. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.