By Paul A. Harris
St. Louis, Mo., Feb. 8 - Hanger Orthopedic Group, Inc. priced $200 million of senior notes due Feb. 15, 2009 at par to yield 10 3/8%, according to syndicate sources.
"It priced at the tight end (of the 10 3/8%-10 5/8% price talk)" a syndicate official commented.
Joint bookrunners on the Rule 144A deal were Lehman Brothers, JP Morgan and Salomon Smith Barney. BNP Paribas was co-manager.
Proceeds from the new notes, along with approximately $37 million Hanger Orthopedic plans to borrow under a new $75 million revolving credit facility, will be used to pay off debt outstanding under its existing revolving credit and term loan facilities, $228.4 million as of Dec. 31, 2001, according to a company press release.
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.
| Issuer: | Hanger Orthopedic Group, Inc. |
|
| Amount: | $200 million
|
| Maturity: | Feb. 15, 2009 |
|
| Type: | Senior notes
|
| Bookrunners: | Lehman Brothers, JP Morgan and Salomon Smith Barney
|
| Co-manager: | BNP Paribas
|
| Coupon: | 10 3/8%, payable semi-annually beginning Aug. 15, 2002 |
|
| Price: | Par
|
| Yield: | 10 3/8%
|
| Spread: | 574 basis points over the 4¾% Treasury due Nov., 2008
|
| Call features: | Callable on Feb. 15, 2006 at 105.188, then 102.594, declining to par on Feb. 15, 2008 and thereafter
|
| Equity clawback: | Until Feb. 15, 2005 for up to 35% at 110.375%
|
| Settlement date: | Feb. 15 (T+5)
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Rule 144A Cusip: | 41043FAD1
|
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