OrthoPediatrics Corp. Announces Private Financing
OrthoPediatrics Corp. (NASDAQ: KIDS) has secured a private financing arrangement with Braidwell LP, providing up to $100 million in capital. The deal includes a $50 million term loan and $50 million in convertible notes. The term loan has an interest rate of SOFR + 6.50%, while the convertible notes accrue interest at 4.75% annually. The notes are convertible into common stock at $40.98 per share, a 30% premium to recent trading prices.
The company plans to use the funds to repay existing debt, cover transaction fees, and support general corporate purposes. Additionally, OrthoPediatrics' Board has approved a $5 million stock repurchase program. This financing is expected to strengthen the company's balance sheet and provide flexibility for strategic growth initiatives, particularly in expanding OPSB clinics at children's hospitals nationwide.
OrthoPediatrics Corp. (NASDAQ: KIDS) ha ottenuto un accordo di finanziamento privato con Braidwell LP, fornendo fino a 100 milioni di dollari di capitale. L'accordo include un prestito a termine di 50 milioni di dollari e 50 milioni di dollari in note convertibili. Il prestito a termine ha un tasso di interesse di SOFR + 6,50%, mentre le note convertibili maturano un interesse del 4,75% annuo. Le note sono convertibili in azioni ordinarie a 40,98 dollari per azione, con un premio del 30% rispetto ai prezzi di negoziazione recenti.
La società prevede di utilizzare i fondi per ripagare debiti esistenti, coprire le spese di transazione e sostenere scopi aziendali generali. Inoltre, il Consiglio di OrthoPediatrics ha approvato un programma di riacquisto di azioni da 5 milioni di dollari. Si prevede che questo finanziamento rafforzi il bilancio dell'azienda e fornisca flessibilità per iniziative di crescita strategica, in particolare nell'espansione delle cliniche OPSB negli ospedali pediatrici a livello nazionale.
OrthoPediatrics Corp. (NASDAQ: KIDS) ha conseguido un acuerdo de financiamiento privado con Braidwell LP, proporcionando hasta 100 millones de dólares en capital. El acuerdo incluye un préstamo a plazo de 50 millones de dólares y 50 millones de dólares en notas convertibles. El préstamo a plazo tiene una tasa de interés de SOFR + 6,50%, mientras que las notas convertibles acumulan interés al 4,75% anual. Las notas son convertibles en acciones comunes a 40,98 dólares por acción, con un 30% de prima sobre los precios comerciales recientes.
La compañía planea utilizar los fondos para pagar deudas existentes, cubrir los costos de transacción y apoyar propósitos corporativos generales. Además, la Junta de OrthoPediatrics ha aprobado un programa de recompra de acciones de 5 millones de dólares. Se espera que este financiamiento fortalezca el balance de la empresa y proporcione flexibilidad para iniciativas de crecimiento estratégico, particularmente en la expansión de clínicas OPSB en hospitales infantiles en todo el país.
OrthoPediatrics Corp. (NASDAQ: KIDS)는 Braidwell LP와 사모 금융 계약을 체결하여 최대 1억 달러의 자본을 확보했습니다. 이번 계약에는 5천만 달러의 기간 대출과 5천만 달러의 전환사채가 포함되어 있습니다. 기간 대출의 이자율은 SOFR + 6.50%이며, 전환사채는 연간 4.75%의 이자를 누적합니다. 이 사채는 최근 거래 가격보다 30% 프리미엄이 붙은 주당 40.98달러로 보통주로 전환될 수 있습니다.
회사는 자금을 기존 채무 상환, 거래 수수료 충당 및 일반 기업 목적을 지원하는 데 사용할 계획입니다. 또한, OrthoPediatrics 이사회는 500만 달러의 자사주 매입 프로그램을 승인했습니다. 이번 금융 조치는 회사의 재무 상태를 강화하고 특히 전국 어린이 병원에서 OPSB 클리닉을 확장하는 전략적 성장 이니셔티브에 대한 유연성을 제공할 것으로 예상됩니다.
OrthoPediatrics Corp. (NASDAQ: KIDS) a sécurisé un arrangement de financement privé avec Braidwell LP, fournissant jusqu'à 100 millions de dollars en capital. L'accord comprend un prêt à terme de 50 millions de dollars et 50 millions de dollars en obligations convertibles. Le prêt à terme a un taux d'intérêt de SOFR + 6,50%, tandis que les obligations convertibles portent un intérêt de 4,75% par an. Les obligations sont convertibles en actions ordinaires à 40,98 dollars par action, représentant une prime de 30% par rapport aux prix de négociation récents.
La société prévoit d'utiliser les fonds pour rembourser des dettes existantes, couvrir les frais de transaction et soutenir des objectifs d'entreprise généraux. De plus, le Conseil d'OrthoPediatrics a approuvé un programme de rachat d'actions de 5 millions de dollars. Ce financement devrait renforcer le bilan de l'entreprise et fournir de la flexibilité pour des initiatives de croissance stratégique, notamment l'expansion des cliniques OPSB dans les hôpitaux pour enfants à l'échelle nationale.
OrthoPediatrics Corp. (NASDAQ: KIDS) hat eine private Finanzierungsvereinbarung mit Braidwell LP gesichert, die bis zu 100 Millionen Dollar Kapital bereitstellt. Der Deal umfasst ein Termindarlehen über 50 Millionen Dollar und 50 Millionen Dollar in wandelbaren Schuldverschreibungen. Das Termindarlehen hat einen Zinssatz von SOFR + 6,50%, während die wandelbaren Schuldverschreibungen jährlich 4,75% Zinsen akkumulieren. Die Schuldverschreibungen können zu einem Preis von 40,98 Dollar pro Aktie in Stammaktien umgewandelt werden, was einem Aufschlag von 30% auf die aktuellen Handelskurse entspricht.
Das Unternehmen plant, die Mittel zur Rückzahlung bestehender Schulden, zur Deckung von Transaktionsgebühren und zur Unterstützung allgemeiner Unternehmenszwecke zu verwenden. Darüber hinaus hat der Vorstand von OrthoPediatrics ein Aktienrückkaufprogramm über 5 Millionen Dollar genehmigt. Diese Finanzierung wird voraussichtlich die Bilanz des Unternehmens stärken und Flexibilität für strategische Wachstumsinitiativen bieten, insbesondere beim Ausbau von OPSB-Kliniken in Kinderkrankenhäusern im ganzen Land.
- Secured $100 million in private financing, strengthening the balance sheet
- Convertible notes priced at a 30% premium to recent stock prices
- Approved $5 million stock repurchase program
- Financing expected to enable cashflow breakeven
- Opportunity for aggressive expansion of OPSB clinics at children's hospitals
- Increased debt load with $50 million term loan and $50 million in convertible notes
- Potential dilution for existing shareholders if convertible notes are converted to common stock
- Financial covenants require maintaining minimum cash balances and net product sales
Insights
This $100 million private financing is a significant move for OrthoPediatrics, substantially bolstering their capital position. The deal's structure, combining a $50 million term loan and $50 million in convertible notes, offers flexibility while keeping immediate dilution in check. The
The interest rates (
Post-financing, the projected
This financing deal underscores OrthoPediatrics' strong market position in pediatric orthopedics. The company's ability to secure
The focus on OPSB clinic expansion in children's hospitals is a smart move. It aligns with the trend of increasing specialized care for pediatric patients and could significantly expand OrthoPediatrics' market reach. This expansion strategy, coupled with their "comprehensive approach that covers the continuum of care," positions them well to capture a larger share of the pediatric orthopedics market.
The involvement of multiple financial advisors (Stifel, Piper Sandler, BTIG and Needham & Company) in this transaction further validates the deal's significance and the company's standing in the medical device sector.
Term Loan and Private Placement of Convertible Notes Will Provide Up To
WARSAW, Ind., Aug. 05, 2024 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics”) (NASDAQ: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, today announced it has signed a private financing arrangement with Braidwell LP consisting of a term loan and private placement of convertible notes that will provide up to
OrthoPediatrics’ COO & CFO, Fred Hite, commented, “This financing strengthens our balance sheet at a more attractive cost of capital. This capital also provides additional flexibility to execute our strategic growth initiatives where one of our top priorities is to be aggressive with OPSB clinic expansion at the remaining children’s hospitals across the country. We expect our current liquidity position will enable us to achieve cashflow breakeven and we appreciate Braidwell who is a great strategic partner that is invested in our future and growth strategy.”
“We are excited to strengthen our partnership with OrthoPediatrics and to continue supporting their advancement of pediatric orthopedics,” said Kaila Krum, Partner at Braidwell. “The company has established itself as a market leader with an experienced team and an expanding portfolio of differentiated technologies. We are confident they will further demonstrate the value of their comprehensive approach that covers the continuum of care while achieving our shared goal of helping more kids.”
Terms of the financing include a
The
In connection with its approval of the financing, the Company’s Board approved a stock repurchase program of up to
The proceeds from the financing will be used to repay the Company’s outstanding debt of approximately
Stifel, Nicolaus & Company, Incorporated, Piper Sandler & Co., BTIG, LLC, and Needham & Company, LLC acted as financial advisors to OrthoPediatrics on the transaction.
Forward-Looking Statements
This press release includes "forward-looking statements" made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can often, but not always, be identified, by the use of words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "believe," "estimate," "project," "target," "predict," "intend," "future," "goals," "potential," "objective," "would" and other similar expressions. Forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control. Important factors could cause actual results to differ materially from those in the forward-looking statements, including, the risk that the term loan and convertible note placement described herein do not fund as expected and the risks, uncertainties and factors set forth under "Risk Factors" in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 8, 2024 as updated and supplemented by the Company’s other SEC reports filed from time to time. Forward-looking statements speak only as of the date they are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable securities laws.
About OrthoPediatrics Corp.
Founded in 2006, OrthoPediatrics is an orthopedic company focused exclusively on advancing the field of pediatric orthopedics. As such it has developed the most comprehensive product offering to the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics currently markets 71 products that serve three of the largest categories within the pediatric orthopedic market. This product offering spans trauma and deformity, scoliosis, and sports medicine/other procedures. OrthoPediatrics’ global sales organization is focused exclusively on pediatric orthopedics and distributes its products in the United States and over 70 countries outside the United States. For more information, please visit www.orthopediatrics.com.
Investor Contact
Philip Trip Taylor
Gilmartin Group
philip@gilmartinir.com
415-937-5406
FAQ
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