BOSTON, Feb 10, 2009 (BUSINESS WIRE) -- Orthofix International N.V. (NASDAQ: OFIX) (the Company) announced that
in addition to its regularly scheduled debt payments, today it made a $7
million prepayment in advance of the scheduled maturity, permanently
reducing its current credit facility by that amount.
Orthofix Executive Vice President and Chief Financial Officer Bob Vaters
stated, "This is the second debt repayment we have made ahead of the
schedule maturity date within the last three months. It demonstrates not
only our desire to continue deleveraging our balance sheet, but our
improved cash generation over the last few months. With the expected
continuation of cash flow improvements we will look for additional
opportunities to pay down debt early, increasing the Company's
flexibility to execute its operating plan."
The Company also announced plans to close its Huntersville, N.C. office
by the end of February 2010. The relocation of the corporate accounting
and finance functions from this facility was completed in 2008, and the
remaining employees will be relocated prior to the expiration of the
current lease in February of next year.
"The consolidation of our operations in Huntersville is part of the
broad based effort to reduce operating expenses that we began a year
ago," said Alan Milinazzo, President and CEO of Orthofix. "We have
already consolidated operations and reduced the number of facilities we
previously occupied in Germany and in the U.K., and the previously
announced reorganization at our Blackstone Medical business unit began
at the end of last year. The consolidation of Blackstone's operations in
New Jersey and Massachusetts into our Texas facility is scheduled to be
completed by the first part of 2010, and we will continue to look for
opportunities to optimize our operating efficiency and reduce expenses."
As Orthofix previously announced, on December 29, 2008 the Company also
made a $10 million partial debt repayment ahead of the scheduled
maturity date. Prior to that, the company and its partner, the
Musculoskeletal Transplant Foundation (MTF), announced they had achieved
a major milestone in their efforts to develop Trinity(R)
Evolution, a new adult stem cell-based allograft, and accelerated its
launch date to June of 2009. Additionally, Orthofix recently initiated
the limited market release of two new products, the Firebird(TM)
pedicle screw system and the PILLAR(TM) SA interbody device,
both of which are expected to be fully launched in the first quarter of
2009.
About Orthofix
Orthofix International, N.V., a global medical device company, offers a
broad line of minimally invasive surgical, and non-surgical, products
for the spine, orthopedic, and sports medicine market sectors that
address the lifelong bone-and-joint health needs of patients of all
ages-helping them achieve a more active and mobile lifestyle. Orthofix's
products are widely distributed around the world to orthopedic surgeons
and patients via Orthofix's sales representatives and its subsidiaries,
including BREG, Inc. and Blackstone Medical, Inc., and via partnerships
with other leading orthopedic product companies. In addition, Orthofix
is collaborating in R&D partnerships with leading medical institutions
such as the Musculoskeletal Transplant Foundation, the Orthopedic
Research and Education Foundation, Rutgers University, the Cleveland
Clinic Foundation, Texas Scottish Rite Hospital for Children and
National Osteoporosis Institute. For more information about Orthofix,
please visit www.orthofix.com.
Forward-Looking Statements
This communication contains certain forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements, which may include, but are not limited to, statements
concerning the projections, financial condition, results of operations
and businesses of Orthofix and its subsidiaries and are based on
management's current expectations and estimates and involve risks and
uncertainties that could cause actual results or outcomes to differ
materially from those contemplated by the forward-looking statements.
Factors that could cause or contribute to such differences may include,
but are not limited to, risks relating to the expected sales of its
products, including recently launched products, unanticipated
expenditures, changing relationships with customers, suppliers and
strategic partners, risks relating to the protection of intellectual
property, changes to the reimbursement policies of third parties,
changes to and interpretation of governmental regulation of medical
devices, the impact of competitive products, changes to the competitive
environment, the acceptance of new products in the market, conditions of
the orthopedic industry and the economy, corporate development and
market development activities, including acquisitions or divestitures,
unexpected costs or operating unit performance related to recent
acquisitions and other factors described in our annual report on Form
10-K and other periodic reports filed by the Company with the Securities
and Exchange Commission.
Important Additional Information
Ramius Capital and certain of its affiliates have filed a preliminary
proxy statement with the SEC in connection with a special general
meeting of shareholders at which Ramius proposes to make changes to the
composition of Orthofix's board of directors. Orthofix intends to file
with the SEC a proxy statement in opposition to Ramius' proposals.
SHAREHOLDERS ARE URGED TO READ ORTHOFIX'S DEFINITIVE PROXY MATERIALS AND
ANY OTHER RELEVANT SOLICITATION MATERIALS FILED WITH THE SEC WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Investors and shareholders may obtain (when they are available) a free
copy of proxy statements filed with the SEC by Orthofix at the SEC's
website at www.sec.gov
or by contacting Georgeson, 199 Water Street, 26th Floor, New York, NY
10038 or by calling (212) 440-9800 (bankers and brokers) or toll-free
(800) 323-4133 (all others).
Orthofix International N.V. and its directors and certain executive
officers are participants in the solicitation of proxies in connection
with the special general meeting of shareholders. The names of such
persons are: James F. Gero, Peter J. Hewett, Jerry C. Benjamin, Charles
W. Federico, Dr. Guy J. Jordan, Ph.D., Thomas J. Kester, CPA, Alan W.
Milinazzo, Maria Sainz, Dr. Walter P. von Wartburg, Kenneth R.
Weisshaar, Robert S. Vaters, Michael Simpson, Bradley R. Mason, Raymond
C. Kolls, J.D., and Michael M. Finegan. Information regarding such
participants, as well as each such person's respective interests in
Orthofix by security holdings or otherwise, is set forth in Orthofix's
Revocation Solicitation Statement dated January 12, 2009, which may be
obtained free of charge at the SEC's website at www.sec.gov
and Orthofix's website at www.orthofix.com.
More current information regarding such persons, as well as each such
person's respective interests in Orthofix by security holdings or
otherwise, will be set forth in the definitive proxy statement materials
to be filed with the SEC and distributed to shareholders by Orthofix as
described above.
SOURCE: Orthofix International N.V.
Orthofix
Dan Yarbrough, 617-912-2903
Vice President of Investor Relations
danyarbrough@orthofix.com
Copyright Business Wire 2009