By Sheri Kasprzak
New York, May 8 - Hanger Orthopedic Group, Inc. has provided the terms of its previously announced $50 million private placement.
Lehman Brothers Inc. and Citigroup Global Markets Inc. were underwriters, buying 50,000 shares of series A convertible preferred stock at $1,000 each to resell to Ares Corporate Opportunities Fund, LP.
The 3.33% preferreds are convertible into stock at $7.56 each.
Hanger may force conversion of the preferreds upon shareholder approval at $6.45 each plus dividends.
The proceeds from the preferreds will be used to refinance its outstanding 10.375% senior notes due 2009 and 11.25% senior subordinated notes due 2009, and also to redeem its outstanding 7% preferred stock.
Hanger, based in Bethesda, Md., operates prosthetic and orthopedic patient-care centers.
| Issuer: | Hanger Orthopedic Group, Inc.
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| Issue: | Series A convertible preferreds
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| Amount: | $50 million
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| Shares: | 50,000
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| Price: | $1,000
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| Dividends: | 3.33%
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| Conversion price: | $7.56
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| Call: | May force conversion with shareholder approval at $6.45 each, plus dividends
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| Warrants: | No
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| Underwriters: | Lehman Brothers Inc. and Citigroup Global Markets Inc.
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| Investor: | Ares Corporate Opportunities Fund, LP
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| Settlement date: | May 3
|
| Stock symbol: | NYSE: HGR
|
| Stock price: | $6.85 at close May 3
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