dj Orthopedics receives commitment for $125 million credit facility via Wachovia

By Sara Rosenberg

New York, Oct. 9 - dj Orthopedics Inc. has received an underwritten commitment for a new $125 million senior credit facility, according to a company spokesman. Wachovia is the lead bank on the deal.

The facility consists of a $100 million term loan and a $25 million undrawn revolver, the spokesman said.

Proceeds from the credit facility will be used to refinance the company's existing credit facility and help finance the acquisition of the bone growth stimulation business from OrthoLogic Corp. for $93 million in cash. The acquisition is subject to the approval of OrthoLogic's stockholders and customary governmental approvals and closing conditions. The transaction is expected to be completed before the end of the year, according to a news release.

""With improved operating metrics and profitability in 2003, our focus is on long-term revenue growth for dj Orthopedics, and bone growth stimulation is a strategically important element of that future growth," said Les Cross, president and chief executive officer, in the release.

"We have established very strong relationships among the orthopedic surgeon community, creating the leading market share in products that rehabilitate soft tissue and bone. The opportunity to now expand into the regeneration market with OrthoLogic's complementary bone growth stimulation products will permit us to leverage our existing relationships in the orthopedic community."

"From a financial perspective, this acquisition is compelling and meets our requirements of bringing higher revenue growth and operating margins to dj Orthopedics," said Vickie Capps, senior vice president and chief financial officer, in the release.

dj Orthopedics is a Vista, Calif. orthopedic sports medicine company.

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