A Medical Device Daily
HealthTronics (Austin, Texas) reported that it signed a new $125 million senior secured term loan B, due 2011, and a definitive agreement for a new five-year $50 million revolving credit facility, due 2010.
HealthTronics will use a portion of the proceeds from this new debt to refinance the company's $100 million 8.75% senior subordinated notes, due 2008, and the outstanding indebtedness under its previous senior credit facility, which as of March 22 was $32 million. The term will bear interest at LIBOR plus 175 basis points.
The 2008 notes will be redeemed on April 22, each at a price of 101.458% of the $100 million aggregate principal amount of the notes, or $101,458,000, plus accrued and unpaid interest through the redemption date.
"The company's projected annual interest savings of $3 million from this refinancing combined with the accelerated integration efforts relating to the Prime/HealthTronics merger further enhances our ability to execute our near-term strategic objectives," said John Barnidge, CFO of HealthTronics.
"In fact," he said, "we have already exceeded our previously stated post-merger synergy target of $10 million on an annualized basis. Additionally, this transaction will streng-then our financial position and lower our weighted average cost of capital. We are more confident than ever in the prospects for the 'new' HealthTronics."
HealthTronics provides healthcare services, primarily to the urology community, and manufactures various medical devices as well as specialty vehicles used for the transport of high-technology medical and broadcast & communications equipment.
The refinancing was led by JP Morgan Chase Bank, National Association as administrative agent, JP Morgan Securities as arranger and Bank of America as syndication agent.
Pathway Medical Technologies (Redmond, Washington) reported closing a $10.1 million round of financing.
The financing was led by Accelerated Technologies. Other investors included Oxford Biosciences, ABN Amro Capital and Giza Venture Capital invested $9.1 million. Existing Pathway shareholders contributed the other $1 million of the investment.
Pathway Medical is developing catheter-based products for minimally invasive treatment of a variety of arterial diseases. The company's technology is used to remove blockages (atherosclerotic plaque and thrombus) from arteries to re-establish blood flow to critical areas of the body.
The company said the investment would be used to address the problem of critical limb ischemia (CLI), lack of adequate blood flow in the legs.
Pathway's system utilizes high-speed rotating scrapers, combined with an aspiration system, to remove the arterial disease through a small puncture site.
The company said the new financing will allow it to conduct clinical trials in CLI and to apply to the FDA for marketing clearance.
In other financing activity, at its annual meeting in New York, stockholders of The Cooper Companies (Lake Forest, California) approved an increase in the number of authorized shares from 70 million to 120 million.
Cooper manufactures specialty healthcare products through its CooperVision and CooperSurgical units.