Hanger Orthopedic buys $190.40 million 10 3/8% notes, $15.49 million 11¼% notes in tender

New York, May 30 - Hanger Orthopedic Group, Inc. said it purchased $190.397 million of its $200 million of 10 3/8% senior notes due 2009 and $15.485 million of its $15.562 million of 11¼% senior subordinated notes due 2009 in its tender offer.

As a result, the amendments to the note indentures have become effective.

The tender continues until 11:59 p.m. ET on June 6.

The Bethesda, Md., provider of orthotic and prosthetic patient care services previously said that as of 5 p.m. ET on May 19 it had obtained the required consents for proposed amendments to the notes' indentures.

The consent solicitations ended at 5 p.m. ET on May 22.

As previously announced, for each $1,000 principal amount of notes, the company paid $1,055.00 for the 10 3/8% notes and $1,032.00 for the 11¼% notes. The payouts include a $30.00 consent payment for those who tender before the consent deadline.

Hanger Orthopedic said the tenders were conditioned upon the consummation of a new $75 million revolving credit facility and $230 million bank term loan, the issuance of $190 million aggregate principal amount of new senior notes and the issue of $50 million of series A convertible preferred stock or other similar financing.

Lehman Brothers Inc. (800 438-3242 or call collect 212 528-7581) and Citigroup Corporate and Investment Banking (800 558-3745) are the co-dealer managers and co-solicitation agents. D.F. King & Co. Inc. is the information agent (800 735-3107).

The offer began on May 9.

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