Orthofix expects to continue paying down debt with improved cash flow

By Lisa Kerner

Charlotte, N.C., Sept. 17 - Orthofix International NV is doing "a good job" paying down debt related to its 2006 purchase of Blackstone Medical, Inc., chief executive officer Alan Milinazzo said at the Stifel Nicolaus 2010 Healthcare Conference in Boston on Friday.

The company has made a lot of scheduled and unscheduled payments to its lenders and most recently refinanced its acquisition-related debt, said Milinazzo.

Orthofix has debt of approximately $228 million and has made debt prepayments of over $24 million ahead of scheduled maturities.

"We see opportunities to continue to pay down that debt with improved cash flow from the company," Milinazzo said.

As previously reported, Orthofix closed on a new $300 million five-year senior secured credit facility at the end of August.

The facility consists of a $200 million revolver and a $100 million term loan, with both tranches priced at Libor plus 300 basis points.

Proceeds are being used to refinance an existing credit facility and for capital expenditures and other general corporate purposes.

In July, Orthofix reported it repaid $5.9 million against the principal of its senior secured term loan during the second quarter.

In total for the six months ended June 30, the company paid down $25.7 million under the term loan.

Orthofix is a Curacao, Netherlands Antilles-based medical device company.

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