A Medical Device Daily
Healthcare information technology company Visicu (Baltimore) reported that it has completed its initial public offering (IPO).
The company sold 6.9 million shares – 900,000 of which were for over-allotments – of its common stock in the IPO at a price of $16 per share for a gross value of about $110.4 million, and its shares began trading on the Nasdaq National Market under the symbol EICU on April 5.
The pricing was more than reported in the amended offering price of $11-$13 a share, first filed with the SEC in mid-March and $1 higher per share than the upper range of the $13-$15 revised pricing disclosed in early April (Medical Device Daily, April 5, 2006).
The company said it is focused on transforming the delivery of hospital-based critical care through its eICU critical care program.
The company said it expects to use the net proceeds from the offering for general corporate purposes and to support the growth of its business, including increasing its sales and marketing efforts, enhancing its product offerings and pursuing additional research and development initiatives. The company said it might also use a portion of the net proceeds to acquire or invest in complementary products, technologies or companies.
Visicu's eICU program is a remote monitoring system that allows hospitals to help improve patient treatment outcomes by leveraging scarce critical care trained staff to monitor critically ill patients more frequently and to intervene earlier to prevent or manage crises.
To date, Visicu's healthcare solutions have been sold primarily to large, multi-hospital health systems that want to improve the quality of their intensive care unit (ICU) care.
Hanger Orthopedic Group (Bethesda, Maryland) reported that it has completed the global refinancing of its debt structure. The transaction includes refinancing all of its outstanding bank and bond indebtedness and preferred stock utilizing the proceeds from a $50 million private placement of 3.33% convertible perpetual preferred stock to Ares Corporate Opportunities Fund, a private equity fund of Ares Management, a new senior secured credit facility comprised of a $230 million term loan and up to a $75 million revolving credit facility and a private offering of $175 million principal amount of senior unsecured notes.
Hanger used about $155 million to repay indebtedness outstanding under its existing revolving credit and term loan facilities, $223 million to refinance its 10-3/8% senior notes and its outstanding 11-1/4% senior subordinated notes due 2009 and about $65 million to redeem its outstanding 10% redeemable preferred stock.
The refinancing will extend the average maturities of the debt to about seven years with minimal impact on total debt service and reduce the annual dividend on the preferred stock by about $5 million, resulting in a transaction that is accretive to EPS in 2006.
“We are extremely pleased to have completed the refinancing,” said Hanger Chairman and CEO Ivan Sabel. “The completion of this refinancing provides the company with stability in its capital structure and flexibility to continue to grow our business.”
Hanger is a provider of orthotic and prosthetic patient care services.
Sontra faces delisting
Sontra Medical (Franklin, Massachusetts) reported it received a notification from the Nasdaq stating that it has failed to comply with the minimum bid price requirement for continued listing. Its stock will be delisted from the Nasdaq at the opening of business June 1. The company said it plans to file a request for a hearing to appeal the Staff Determination.
Sontra focuses on transdermal science.