A Medical Device Daily
Pediatrix Medical Group (Fort Lauderdale, Florida) reported that it has completed a new $350 million revolving credit facility that will provide a funding source for acquisitions, as well as other corporate purposes. The credit facility also features an option that would allow Pediatrix, under certain conditions, to increase the total borrowing capacity under the facility to $400 million.
The new facility matures in five years, and it replaces a $225 million revolving credit facility that was due to expire in 2009.
The company has successfully used its cash and credit facility to execute a growth strategy that led to a national group practice of neonatal, maternal-fetal, pediatric cardiology and pediatric intensive physicians and advanced practitioners. The company also is executing a new strategic opportunity to develop a national anesthesia physician group practice.
The new line of credit was provided by a syndicate of 12 financial institutions, with Wachovia Bank as administrative agent, Bank of America as syndication agent and U.S. Bank as documentation agent. Wachovia Capital Markets was joint lead arranger and sole bookrunner and Banc of America Securities as joint lead arranger.
Pediatrix is a provider of neonatal, maternal-fetal and pediatric physician subspecialty services and recently expanded to include anesthesiology services. It is also one of the nation's largest providers of newborn hearing screens.
Pathwork Diagnostics (Sunnyvale, California), a molecular diagnostics company focused on oncology, reported the closing of a $20 million financing led by Abingworth, which joins the existing investors participating in this round, including Prospect Venture Partners, Advent Venture Partners, Novus Ventures, Venrock and Versant Ventures.
The funding announcement came on the heels of FDA's clearance for the Pathwork Tissue of Origin Test for diagnosis of tumors of uncertain origin, including poorly differentiated, undifferentiated and metastatic tumors (Medical Device Daily, Aug. 4, 2008).
"With this $20 million round of financing completed and the recent FDA clearance, the company is well positioned to fund important commercialization programs, including offering the Pathwork Tissue of Origin Test through an additional distribution channel, and building our pipeline," said President/CEO Deborah Neff.
In addition to offering the Pathwork test as a service through the CLIA-certified Pathwork Diagnostics Laboratory, FDA clearance of the in vitro diagnostic (IVD) kit version of the test will give Pathwork's customers the opportunity to purchase an IVD kit and run the test in their own labs.
"Our channels to market are expanding and we are building our customer support team to provide outstanding service to our customers," said Neff. "In addition, we are investigating new applications of our technology that will enable us to offer new, breakthrough diagnostic capabilities to the oncology community."
In other financing news: Health Care REIT (Toledo, Ohio) reported that it intends to offer, subject to market and other conditions, 6 million shares of its common stock. It added that it intends to grant the underwriters a 30-day option to purchase up to an additional 900,000 shares to cover any over-allotments.
The company said it plans to use the net proceeds of the offering to invest in additional senior housing and healthcare properties. Pending such use, the proceeds will be used to repay borrowings under the company's unsecured line of credit.
The shares of common stock will be registered under its existing shelf registration statement on file with the Securities and Exchange Commission.
The joint bookrunning managers for the offering are Deutsche Bank Securities, Bank of America Securities, UBS Investment Bank and Merrill Lynch & Co.
Health Care REIT is a real estate investment trust that invests across the full spectrum of senior housing and healthcare real estate.