dj Orthopedics to purchase or redeem 12 5/8% notes with equity sale proceeds

New York, Feb. 19 - dj Orthopedics Inc. said it plans to purchase and/or redeem a portion of its $75 million of outstanding 12 5/8% senior subordinated notes due 2009, issued by its subsidiaries, dj Orthopedics LLC and DJ Orthopedics Capital Corp., using most of the anticipated proceeds of an upcoming equity offering.

dj Orthopedics, a Vista, Calif.-based sports medicine company, said in an 8-K filing with the Securities and Exchange Commission that it might purchase the notes in the open market in privately negotiated transactions or - on or after the notes become callable on June 15 - redeem the notes under the terms of their underlying indenture.

The company said that if it were to redeem all of the notes on June 15, the redemption price would be 106.313% of the principal amount, or $79.7 million, plus accrued and unpaid interest.

It plans to use any remaining net proceeds from the stock sale for general corporate purposes.

dj Orthopedics plans a 7.5 million share offering, consisting of 2.75 million shares being sold by the company and 4.75 million being sold by selling stockholders. With the company's shares selling just below $20 currently, it anticipates estimated gross proceeds before expenses of slightly less than $150 million.

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