A Medical Device Daily

Privately held Axya Medical (Beverly, Massachusetts) reported that it has completed a $6.8 million private placement of preferred equity led by The Vertical Group, a venture capital firm focused on the fields of medical technology and biotechnology.

In addition to the The Vertical Group, other venture capital investors participating in this round are CrossBow Ventures, Sightline Partners and Prism Venture Partners.

“This financing will support the expansion of our sales and marketing organization, along with signing on of new distributors to fill out territories throughout the U.S.,“ said Paul Fenton, president and CEO. “The funding will also be used for new products being developed for the Axya Shoulder Fixation System for use in arthroscopic shoulder procedures.“

Axya has developed a method of using ultrasonic energy to weld polymeric materials used in surgical procedures. Its products have been designed to ultrasonically weld sutures thereby eliminating knot tying by the surgeon, a time-consuming and tedious task. These products have received FDA clearance and are applicable in a variety of arthroscopic and laparoscopic surgical procedures including sports medicine, urology, gynecology and general surgery.

Syneron Medical (Yokneam, Israel) reported that it has filed with the Securities and Exchange Commission a registration statement for an offering of 7 million ordinary shares by selling shareholders.

The selling shareholders have granted the underwriters a 30-day option to purchase up to an additional 1.05 million of their ordinary shares.

The offer will be made only by means of a prospectus. Lehman Brothers and CIBC World Markets will be joint book-running managers of the offering, with Citigroup Global Markets serving as lead manager. Stephens, Thomas Weisel Partners and C.E. Unterberg, Towbin will be co-managers.

Syneron manufactures medical aesthetic devices that are powered by its patented ELOS combined-energy technology of bi-polar radio frequency and light.

In other dealmaking news:

• Eye Care Centers of America (ECCA; San Antonio) reported extending its offer to purchase for cash its entire $100 million aggregate principal amount of 9-1/8% senior subordinated notes, due 2008, and all of its $30 million aggregate principal amount of floating interest rate subordinated term securities due 2008.

The tender offer, which was to have expired at midnight EST on Feb. 16, will be extended to 9 a.m. EST, on March 1, unless further extended or terminated.

The depositary, Global Bondholder Services, has advised ECCA that $92,135,000 aggregate principal amount of the fixed rate notes, representing about 92% of the fixed rate notes outstanding, and $30 million aggregate principal amount of the floating rate notes, representing 100% of the floating rate notes outstanding, had been validly tendered and not withdrawn as of Feb. 15.

The total consideration to be paid to holders that tendered their notes and delivered their consents prior to Jan. 14, is equal to $1,032.92 per $1,000 principal amount of the fixed rate notes and $1,002.50 per $1,000 principal amount of the floating rate notes, each of which includes a consent payment of $2.50 per $1,000 principal amount of the notes. Holders that tender their notes after Jan. 14 and prior to the expiration of the tender offer will receive $1,030.42 per $1,000 principle amount of the fixed rate notes and $1,000. per $1,000 principal amount of the floating rate notes. In all cases, ECCA said it will pay accrued and unpaid interest on the notes up to, but not including, the date of payment.

The tender offer is being extended in order to satisfy, and remains subject to various conditions, including the completion of the acquisition of ECCA by Moulin Inter-national Holdings and Golden Gate Capital.

ECCA operates 377 stores in 33 states. The company's brand names include EyeMasters, Binyon's, Visionworks, Hour Eyes, Dr. Bizer's VisionWorld, Dr. Bizer's ValuVision, Doctor's ValuVision, Stein Optical, Vision World and Eye DRx.

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