Hanger Orthopedic Group, Austin, Texas, sold $200 million of senior notes in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. The notes were priced at par with an interest rate of 7-1/8 percent; the principal will be due November 15, 2018. According to a Hanger press release, the notes are unsecured and will be guaranteed by all of the company’s existing domestic subsidiaries and certain of its future subsidiaries.
Hanger intends to use the net proceeds from the sale of the notes to repay $175,000,000 in outstanding10-1/4 percent senior notes due 2014, and to pay related fees and expenses and for general corporate purposes.
