A Medical Device Daily

MVC Capital (Purchase, New York) a publicly traded business development company that makes private debt and equity investments, reported that it has made a follow-on investment of $30 million in Ohio Medical (OMC; Gurnee, Illinois), an existing portfolio company of the fund, in order to sponsor OMC's acquisition of Amvex (Richmond Hill, Ontario), a deal that was disclosed earlier this week.

Amvex makes a line of medical suction and oxygen therapy products, including flowmeters, hose assemblies, vacuum and gas regulators, adapters and fittings, integrated outlet flowmeters and integrated gas regulators.

After the close of the acquisition, expected before year end, MVC will continue to be the majority shareholder of OM. David Finney, the current CEO of OMC, will remain as the CEO of the combined entity.

"We are pleased to support the acquisition of Amvex by OMC as we view this as an opportunity to grow our medical device beachhead," said Michael Tokarz, chairman and portfolio manager of MVC Capital.

Guggenheim Partners and AEA Investors provided senior debt financing in support of the acquisition.

Mitralign (Tewksbury, Massachusetts) reported the closing of a $24 million Series C financing.

The company said the funds will enable it to complete its initial clinical experience and obtain CE mark approval of the Mitralign system.

This round, co-led by Medtronic (Minneapolis) and Johnson and Johnson Development Corp., also includes Oakwood Medical, Palisades Capital and Accelerated Technology Partners. Existing investors Forbion, Giza, Oxford Biosciences and Triathlon Medical Venture Partners also participated in the round.

Jeff Barnes of Oxford Biosciences will lead the board as chairman. Rick Geoffrion, will remain a director of the company. There are no other changes to the board.

"This financing will allow us to advance our endeavor to emulate surgical precision with a catheter-based approach for mitral valve repair," said John MacMahon, president/CEO of Mitralign.

To date the company said it has enrolled more than 20 patients in a catheter study with Adrian Ebner, MD, in Asuncion, Paraguay. The company will proceed with the addition of clinical sites for the Mitralign Pilot Study in Europe.

The condition treated, mitral valve regurgitation (MR), is common in patients with congestive heart failure (CHF). Clinical studies have proven that MR significantly increases the risk of mortality in patients afflicted with CHF, a disease affecting 25 Million worldwide.

Combining surgical precision with interventional therapy, Mitralign is developing a catheter-based method to effectively treat MR in patients suffering from CHF. Mitralign's goal is to emulate the technique employed in traditional open heart surgical repair but in a far less invasive manner.

In other financings:

  • Hologic (Bedford, Massachusetts) said it intends to sell, subject to market and other conditions, $1.3 billion aggregate principal amount of convertible senior notes due 2037 pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission. The company said it expects to grant the underwriters an option to purchase up to an additional $195 million aggregate principal amount of notes to cover any overallotments. Goldman, Sachs & Co. is acting as sole book-running manager of the offering. The company said it intends to use the net proceeds from the offering to repay a portion of its outstanding senior secured indebtedness. Hologic specializes in diagnostic imaging products and interventional devices dedicated to serving the healthcare needs of women. Historically, it has developed products focused on mammography, breast care and osteoporosis assessment.
  • Siemens Financial Services (Iselin, New Jersey) reported hat it has provided a $40 million senior secured credit facility to Merit Mountainside. The 5-year credit facility included a $15 million revolving line of credit and a $25 million term loan. The proceeds were used to complete the acquisition of Mountainside Hospital, which has served the Montclair/Glen Ridge, New Jersey community and surrounding townships since 1891, by Merit Health Systems (Louisville, Kentucky).
  • Health Care REIT (Toledo, Ohio) reported that it has priced a public offering of 3.5 million shares of its common stock. It is granting the underwriter a 30-day option to purchase up to an additional 525,000 shares of common stock to cover any over-allotments. The shares of common stock will be registered under Health Care REIT's existing shelf registration statement on file with the SEC. The company estimated that the gross proceeds from this offering will be about $147.5 million (or about $169.6 million if the underwriter's over-allotment option is exercised in full). The company said it intends to use the net proceeds from the offering to invest in additional properties. UBS Investment Bank is the sole underwriter for the offering. Health Care REIT is an equity real estate investment trust that invests across the full spectrum of senior housing and healthcare real estate, including independent living/continuing care retirement communities, assisted living facilities, skilled nursing facilities, hospitals, long-term acute care hospitals and medical office buildings.

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