US Oncology (Houston) reported that its parent company, US Oncology Holdings, has issued an aggregate $250 million principal amount of its senior floating rate notes due 2015.
The floating-rate notes are general unsecured obligations of holdings, and bear interest at a rate per annum, reset semi-annually, equal to six-month LIBOR plus 5.25%. The floating-rate notes were issued and sold in a private offering to institutional investors.
In connection with the issuance of the floating rate notes, the company amended its senior secured credit facility to, among other things, allow for the issuance of the floating rate notes and the use of net proceeds from the issuance, together with cash on hand of the company, to pay a dividend to the stockholders of holdings, to make a payment to participants in the company's 2004 long-term cash incentive plan, and to pay related fees and expenses.
Norwood Abbey (Melbourne, Australia) reported that it has completed a private placement to three U.S. institutions to raise an immediate A$5.8 million (U.S. $4.5 million).
Through this transaction, the company said it continues to build its base of U.S. shareholders, who now own roughly 26% of the company.
The placement has been made to three existing New York-based shareholders who added to their equity position in Norwood.
The placement involves the issue of 12.7 million shares at 46 cents each. Additionally, arrangements have been put in place, with the same investors, in which the company may receive an additional equity investment of another $6 million during the next six months.
The company said it believes that the capital raising, together with the proposed additional equity investment, should provide it with sufficient capital to fully fund the current business plan/financial needs.
Norwood Abbey is a drug delivery and immunology company whose technologies include laser-assisted delivery, micro-needle arrays, a needle-less injection system and pressure wave technology for the transfer of both drugs and genetic material.
In other financing activity:
• Rockwell Medical Technologies (Wixom, Michigan), a hemodialysis concentrate manufacturer for the dialysis market, reported that it has signed a $2.75 million revolving credit loan facility with Standard Federal Bank, a subsidiary of ABN Amro.
Under the terms of the loan agreement, dated March 29, the credit facility has a limit of $2.75 million. The loan facility expires March 31, 2006, and is secured by the company's accounts receivable, inventory and certain other assets.
"[This] new credit facility . . . provides us with increased borrowing capacity at more favorable rates," said Thomas Klema, vice president and CFO of Rockwell. "This credit line should provide us with the working capital resources we need to support our growth."
Rockwell reported on Feb. 15 that it had secured multiple supply contracts aggregating $2.5 million in the Southeast region. The company subsequently announced a new facility in the Southeast, which commenced production and distribution operations this month (Medical Device Daily, March 1, 2005).