Hanger Orthopedic $200 million seven-year notes to hit road Wednesday

By Paul A. Harris

St. Louis, Mo., Jan. 29 - Hanger Orthopedic Group, Inc.'s offering of $200 million seven-year senior notes (B-) will head out on the road Wednesday, according to a syndicate source.

The deal is expected to price Feb. 8, according to the syndicate source.

Lehman Brothers, J.P. Morgan and Salomon Smith Barney are joint bookrunners and BNP Paribas is co-manager, according to the source.

The Rule 144A notes are non-callable for four years.

Hanger plans to use proceeds from the notes, along with approximately $37 million it plans to borrow under a new $75 million revolver, to pay down debt outstanding on its existing revolving credit and term loan facilities. As of Dec. 31, 2001, the company had $228.4 million outstanding, according to a press release issued by the company.

The release also stated that the new senior unsecured notes be will "be guaranteed by all of Hanger's domestic subsidiaries."

The patient-care orthopedic and prosthetic services provider and components manufacturer is based in Bethesda, Md.

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