EDAP uses exchange offer of debentures, warrants to restructure debt

By Marisa Wong

Madison, Wis., Jan. 26 - EDAP TMS SA has negotiated an exchange with holders of its senior debentures and warrants in order to restructure its outstanding convertible debt, according to a news release.

Certain holders have agreed to exchange their outstanding senior debentures and warrants for $10 million of 9% non-convertible term notes due June 30, 2014, warrants to purchase 408,691 newly issued shares at an exercise price equal to the par value per share and 1,926,685 newly issued shares in the form of American Depositary Receipts.

Certain other holders have agreed to exchange a total of $500,000 of outstanding senior debentures and warrants for 22,186 newly issued shares and cash in a like amount.

Following the exchange, EDAP's total outstanding debt will be reduced to $10 million from $10.5 million with an extended maturity of June 30, 2014 instead of Oct. 29, 2012.

"We are particularly pleased with this exchange completed with our bond and warrant holders. It removes the short term debt burden by extending the maturity to 2014 and eliminates the potential dilution connected with our 2007 convertible bond," said chief executive officer Marc Oczachowski in the release.

"We believe the agreement strengthens EDAP's financial profile in an efficient and effective transaction and reduces some of our future financial obligations. We believe these agreements are in the best interests of all EDAP shareholders and serve as the foundation for the company to continue its growth and market development."

Rodman & Renshaw, LLC was the adviser for the exchange.

EDAP develops, produces and markets medical devices for the treatment of urological diseases and is based in Vaulx-en-Velin, France.

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