Financings roundup
dj Orthopedics closes on $56.7M; TomoTherapy adds equity $7M
A Medical Device Daily Staff Report
dj Orthopedics (San Diego, California) reported the closing of its previously announced public offering of 7.5 million shares of common stock at $19 a share, and the sale of an additional 1,125,0000 shares in an over-allotment option to the underwriters for the same price.
The offering thus raised net proceeds of about $56.7 million, the company said. The company did not receive any of the net proceeds of the sale of shares by the selling stockholders.
dj Orthopedics said it will use all, or substantially all, of the net proceeds from the offering to purchase and/or redeem, as applicable, a portion of the $75 million of outstanding 12 5/8% senior subordinated notes due 2009. The company may purchase these notes in the open market, in privately negotiated transactions or, on or after June 15, redeem these notes according to the terms of the indenture governing the senior subordinated notes for an amount equal to (on June 15) 106.313% of the outstanding principal amount, plus accrued and unpaid interest. The company also expects to use cash on hand to purchase or redeem senior subordinated notes that are not retired from the use of the net proceeds from the offering.
J.P. Morgan Securities and Lehman Brothers acted as joint book-running managers for the offering. Co-managers were Piper Jaffray & Co., Wachovia Capital Markets, First Albany Capital and WR Hambrecht + Co, LLC.
dj Orthopedics specializes in the development of rehabilitation and regeneration products for the non-operative orthopedic and spine markets. The 600 rehabilitation products include rigid knee braces, soft goods and pain management products to treat chronic conditions and to aid in recovery after surgery or injury. Its regeneration products consist of bone growth stimulation devices treating non-union fractures and as adjunct therapy after spinal fusion surgery.
In other financing activity:
TomoTherapy (Madison, Wisconsin) reported completing a $7 million round of equity financing that included participation by Ascension Health Ventures (St. Louis, Missouri) and other current investors.
TomoTherapy has developed the Hi-Art System designed to target radiation treatment to a patients tumor while limiting damage to surrounding healthy tissues. Using a ring design, the system delivers a form of image-guided intensity modulated radiotherapy and integrates treatment planning, patient positioning and treatment delivery into one system.
The company received FDA clearance for the device in 2002.
Ascension Health Ventures, a subsidiary of Ascension Health, is a Catholic health ministry focused on delivery of quality care, particularly to those persons who are poor and vulnerable. With assets of $11 billion, it terms itself the nations largest non-profit health system, working in 20 states and the District of Columbia.
John Doyle, president of Ascension Health Ventures, said, Improving cancer care in our system is a priority among our leaders and clinicians. To participate with the TomoTherapy team in the future development of this technology is exciting.
In other financing activity, Team Health (Knoxville, Tennessee) said it has commenced a cash tender offer and consent solicitation for any and all of its $100 million aggregate principal amount of 12% senior subordinated notes due 2009. The offer is scheduled to expire on March 22, unless extended or earlier terminated. The consent solicitation will expire on March 8. Holders tendering their notes will be required to consent to certain proposed amendments to the indenture governing the notes, which will eliminate substantially all of the restrictive covenants.
Those holders who validly tender their notes by the consent date will receive the total consideration of $1,082.50 per $1,000 principal amount of notes. Holders who validly tender their notes after the consent date and prior to the expiration date will receive as payment for the notes $1,062.50 per $1,000 principal amount of notes. In addition to the offer, the company intends to consummate a private offering of a new series of senior subordinated notes; enter into new senior secured credit facilities; redeem its outstanding preferred stock; and pay a dividend to holders of the companys common stock.
The company has engaged J.P. Morgan Securities and Banc of America Securities to act as dealer managers and solicitation agents in connection with the offer.
Team Health has contracts with nearly 400 hospitals in about 40 states to provide medical staffing, management, administrative and other support services.
