Simpson Thacher represented DJO Finance LLC (the “Company”) and DJO Finance Corporation, both wholly-owned subsidiaries of DJO Global, Inc., in refinancing transactions that included (1) a private offer to exchange any and all of their $300 million aggregate principal amount of outstanding 9.75% Senior Subordinated Notes due 2017 for new 10.75% Third Lien Notes due 2020 and cash, (2) a Rule 144A/Regulation S offering of $1.045 billion aggregate principal amount of 8.125% Second Lien Notes due 2021 and (3) the entering into of a new $150 million senior secured asset-based revolving credit facility maturing in June 2020 and a new $1.035 billion senior secured term loan facility maturing in June 2020.
The net proceeds of the offering of the new 8.125% Second Lien Notes due 2021, together with borrowings under the new senior secured credit facilities and cash on hand, were used to (1) finance the redemption, satisfaction and discharge of the Company’s $330 million aggregate principal amount of 8.75% Second Priority Senior Secured Notes due 2018, $440 million aggregate principal amount of 9.875% Senior Notes due 2018 and $300 million aggregate principal amount of 7.75% Senior Notes due 2018, (2) repay amounts outstanding under the Company’s existing senior secured credit facilities, and (3) pay all related fees and expenses. The refinancing transactions closed on May 7, 2015.
DJO is a global developer, manufacturer and distributor of high-quality medical devices that provide solutions for musculoskeletal health, vascular health and pain management. DJO Finance LLC continues to be owned primarily by affiliates of Blackstone Capital Partners V L.P.
The Simpson Thacher team included Richard Fenyes, Jonathan Ozner, Kai Fan, Erica Lee and Angela McCray (Capital Markets); Brian Steinhardt, Homin Lee and Julianna Manzi (Credit); Jonathan Cantor and Devin Heckman (Tax); Timothy Mulvihill (Environmental); Jeanne Annarumma (ERISA) and Janet Nadile (Collateral).