ReAble gets debt commitment from Credit Suisse and Bank of America for DJO purchase

By Sara Rosenberg

New York, July 16 - ReAble Therapeutics Inc. has received a debt financing commitment from Credit Suisse and Bank of America to help fund its acquisition of DJO Inc., according to an 8-K filed with the Securities and Exchange Commission Monday.

Under the agreement, DJO stockholders will receive $50.25 per share in cash. The transaction is valued at $1.6 billion, including the assumption of debt.

An affiliate of The Blackstone Group is the controlling shareholder of ReAble and has committed to provide the equity financing needed to complete the deal.

The transaction is expected to close in the fourth quarter, subject to DJO stockholder approval and regulatory approvals. There is no financing condition.

DJO has a 50-day "go-shop" period under the acquisition agreement and would be required to pay a breakup fee of $18.7 million if a superior proposal is obtained.

ReAble is an Austin, Texas, medical device company focused on rehabilitation, pain management, physical therapy and orthopedics. DJO is a Vista, Calif., provider of products and services that promote musculoskeletal and vascular health.

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