dj Orthopedics Completes Redemption of $75 Million of 12 5/8% Senior Subordinated Notes Due 2009
SAN DIEGO, June 17 /PRNewswire-FirstCall/ -- dj Orthopedics, Inc., (NYSE: DJO), a global medical device company specializing in rehabilitation and regeneration products for the non-operative orthopedic and spine markets, today announced that it has completed the redemption of its outstanding $75 million of 12 5/8% Senior Subordinated Notes due 2009 ("Notes"). Holders of the Notes received a total of $1,063.13 per $1,000 principal amount of Notes, aggregating $79.7 million, plus accrued and unpaid interest through June 15, 2004.
In connection with the redemption, dj Orthopedics will record a one-time charge in the second quarter of approximately $7.7 million (pretax) to write-off the redemption premium of $4.7 million and remaining unamortized debt issuance costs and discounts. The redemption of the notes will reduce the Company's annual interest expense by approximately $10 million, beginning in the third quarter.
"We are very pleased to have achieved this significant milestone to de-leverage the Company and reduce our interest expense," said Les Cross, president and CEO of dj Orthopedics. "This redemption will contribute stronger earnings and cash flow beginning in the third quarter of this year, and positions dj Orthopedics with an enhanced capital structure to facilitate our future growth initiatives."
About dj Orthopedics, Inc.
dj Orthopedics is a global medical device company specializing in rehabilitation and regeneration products for the non-operative orthopedic and spine markets. The Company's broad range of over 600 rehabilitation products, including rigid knee braces, soft goods and pain management products are used in the prevention of injury, in the treatment of chronic conditions and for recovery after surgery or injury. The Company's regeneration products consist of bone growth stimulation devices that are used to treat nonunion fractures and as an adjunct therapy after spinal fusion surgery.
The Company sells its products in the United States and in more than 30 other countries through networks of agents, distributors and its direct sales force that market its products to orthopedic and podiatric surgeons, spine surgeons, orthopedic and prosthetic centers, third party distributors, hospitals, surgery centers, physical therapists, athletic trainers and other healthcare professionals. For additional information on the Company, please visit www.djoglobal.com.
SOURCE dj Orthopedics, Inc.
-0- 06/17/2004
/CONTACT: Mark Francois, Director of Investor Relations of dj
Orthopedics, Inc., +-760-734-4766, Mark.Francois[at]djoglobal[dot]com/
/Web site: http://www.djortho.com
(DJO)
CO: dj Orthopedics, Inc.
ST: California
IN: MTC HEA
SU:
AJ-JH
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7148 06/17/2004 07:55 EDT http://www.prnewswire.com
dj Orthopedics, Inc.
Mark Francois, 760-734-4766
