A Medical Device Daily
Visicu (Baltimore), developer of a remote monitoring system and support services for intensive care units (ICUS) in more than 80 hospitals nationwide, reported the pricing of its initial public offering (IPO) of 6 million shares of its common stock at $16 a share. Visicu has granted underwriters an option to purchase up to another 900,000 shares to cover over-allotments. If all the shares are exercised, this would give the offering a gross value of about $110.4 million.
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 Tuesday (Medical Device Daily, April 5, 2006).
Visicu describes itself as focused on transforming the delivery of hospital-based critical care through its eICU critical care program, a remote monitoring system for ICUs that leverages scarce critical care-trained staff to monitor patients in ICUs more frequently and to intervene earlier to prevent or manage crises.
Shares of the company's common stock will trade on the Nasdaq National Market under the symbol EICU.
Morgan Stanley is acting as the sole book-runner and lead manager for the offering. Wachovia Capital Markets, Thomas Weisel Partners and William Blair & Co. are acting as co-managers.
Owens & Minor (O&M; Richmond, Virginia) reported pricing a new public offering of $200 million in aggregate principal amount of 6.35% senior notes, due 2016. The company said it will use the proceeds of the offering to fund the purchase of its outstanding $200 million of 8-1/2% senior subordinated notes, due 2011, in accordance with a previously disclosed tender offer and consent solicitation for all of the existing notes.
The new notes will bear interest at an annual rate of 6.35% and be offered at a price of $999.39 per $1,000 note, under a registration statement filed with the SEC on Monday.
The company said it intends to use any net proceeds from the offering of new notes, together with cash on hand, to redeem or defease the existing notes under the terms of the indenture governing the existing notes.
Lehman Brothers is the sole book-running manager for the public offering of the new notes. Banc of America Securities, Citigroup and SunTrust Robinson Humphrey are senior co-managers for the offering of the new notes. JP Morgan, KeyBanc Capital Markets and Wachovia Securities are co-managers for the offering of the new notes.
O&M distributes name-brand medical and surgical supplies and is a healthcare supply chain management company serving hospitals, integrated healthcare systems, alternate care locations, group purchasing organizations, the federal government and consumers.
In other financing activity:
• Ortec International (New York) reported that it has entered into definitive agreements for a private placement sale of its 6% Series E convertible preferred stock, with warrants attached – for gross proceeds of about $6.17 million – in connection with its proposed merger with Hapto Biotech (Jerusalem, Israel). Proceeds from the private placement will be held in escrow pending approval of the merger by Hapto shareholders at a meeting April 11.
In December, Ortec executed a non-binding letter of intent to acquire Hapto, focused on the development of two proprietary fibrin derived platform technologies: Fibrin Micro Beads and Haptides.
Ortec is involved in the commercialization of a technology to stimulate the repair and regeneration of human tissue.
• Omega Healthcare Investors (Timonium, Maryland) reported closing a new $200 million revolving senior secured credit facility on March 31.
The new credit facility replaces Omega's previous $200 million senior secured credit facility, which has been terminated. Omega said it will realize a 125 basis-point savings on LIBOR-based loans under the new acility, as compared to LIBOR-based loans under the prior facility. The new facility matures in four years, on March 31, 2010, and includes an accordion feature that permits Omega to expand its borrowing capacity to $300 million during its first two years.
For the three-month period ending March 31, 2006, Omega said it will record a one-time, non-cash charge of about $2.7 million relating to the write-off of deferred financing costs associated with the termination of its prior credit facility. As of March 31, the company said it had $4.5 million of borrowings outstanding under the new facility.
Omega is a real estate investment trust investing in the long-term care industry.
• Windrose Medical Properties Trust (Indianapolis), a self-managed specialty medical properties real estate investment trust, reported that through subsidiaries it has secured two new loans totaling $36 million with Charter One Bank to provide permanent financing for the Foundation Surgical Hospital and the Foundation Medical Tower (both Bellaire, Texas). The facilities replace two secured construction loans made in September 2004 and December 2004.
Windrose acquires, develops and manages specialty medical properties.