Hanger Orthopedic starts roadshow for $200 million eight-year notes

By Paul A. Harris and Sara Rosenberg

St. Louis, Oct. 19 - Hanger Orthopedic Group, Inc. began a brief roadshow on Tuesday for its $200 million offering of eight-year senior notes (current ratings B3/B-), according to an informed source.

The roadshow wraps up on Wednesday, and the deal is set to price thereafter.

Noting that the company is "going into a pretty hot [high-yield] market," Hanger officials expressed hopes, during a Tuesday conference call, that the deal could be executed with an interest rate in the 7% range.

Bank of America Merrill Lynch, Jefferies & Co., Oppenheimer & Co. and SunTrust Robinson Humphrey Inc. are the joint bookrunners for the notes, which are formatted according to the provisions of Rule 144A with registration rights.

RBC Capital Markets Corp. is the co-manager.

The notes come with four years of call protection and a 101% poison put.

The Austin, Texas-based provider of orthotic and prosthetic patient care services plans to use the proceeds to repurchase its existing 10¼% senior notes due 2014 and for general corporate purposes.

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