A Medical Device Daily
Polypore International (Charlotte, North Carolina) has filed for an initial public offering to sell up to $362.3 million in common stock, according to a filing with the Securities and Exchange Commission.
Details about the number of shares offered and their estimated price range weren't disclosed. The $362.3 million valuation was estimated solely for calculating the registration fee, the filing says.
The company said it will use the proceeds to purchase its 10.5% senior discount notes that are due in 2012.
Polypore makes polypropylene and polyethylene membranes used to separate the positive and negative electrodes — and control the flow of ions — in lead-acid and lithium batteries. Its products are found in batteries for cars and consumer products. The company also makes membranes used as filters in healthcare (hemodialysis, blood oxygenation) and industrial (water degasification, semiconductor manufacturing) applications.
Polypore recently reported fourth-quarter net income of $792,000 on sales of $124.9 million. In the corresponding quarter in 2005, the company posted net income of $3.5 million on sales of $101.6 million.
The company is controlled by Warburg Pincus.
Hanger Orthopedic Group (Bethesda, Maryland) reported that it has amended its existing senior secured credit facilities to lower the applicable interest rates and modify certain other covenants.
Amended interest rates on the Term Loan B are LIBOR plus 2.25%. The interest rate on the outstanding revolving credit facility remains the same. The amendment also provides the company with additional flexibility with regard to certain other covenants.
We are pleased to have completed this amendment that will not only result in annual interest savings, but also provide us with a solid framework for future growth," said George McHenry, Hanger's CFO.
Hanger Orthopedic Group is a provider of orthotic and prosthetic patient care services.
In other financing news: Pace Health Management Systems (La Plata, Maryland) reported that its shareholders approved a plan of recapitalization at a special meeting held March 13 which includes a name change to Conmed Healthcare Management, and a one for twenty reverse stock split.
Conmed's common stock is expected to trade on the OTCBB under the symbol CMHM.
Immediately after the reverse stock split, the company said it will convert its existing Series A preferred stock into 4,584,196 shares of common stock.
It also said it will reincorporate in the state of Delaware via a merger into Pace's wholly owned subsidiary.
In addition to the Series A preferred stock, all of Conmed's outstanding Series B and C preferred stock will be converted into shares of common stock.
"We are pleased the shareholders have approved the plan of recapitalization," said Dr. Richard W. Turner, president/CEO of Conmed. "We believe the simplified capitalization structure, our reincorporation in the State of Delaware and the name change are essential in positioning Conmed to compete effectively in the correctional healthcare market."
As a result of the reverse split and the conversion of all the outstanding preferred stock, the total number of Conmed common shares outstanding will be about 11.8 million. No preferred shares will be outstanding.
Conmed has provided correctional healthcare services since 1984, beginning in the state of Maryland, and currently services 17 detention centers and facilities at the county level throughout the U.S. Conmed's services have expanded to include mental health, pharmacy and out-of-facility healthcare expenses.