Thermage sets $8-$9 per share target price for upcoming IPO

By Jennifer Chiou

New York, Nov. 9 - Thermage, Inc. set price talk for its upcoming 6 million share initial public offering at between $8.00 and $9.00 per share in an FWP filing with the Securities and Exchange Commission.

There is a greenshoe for 900,000 additional shares.

On Aug. 10, the company filed for an estimated $86.25 million IPO.

Merrill Lynch & Co. is bookrunner with Thomas Weisel Partners LLC, Wachovia Securities and C.E. Unterberg, Towbin as joint leads and Maxim Group as co-manager.

The Hayward, Calif.-based company designs, manufactures and markets medical devices for the non-invasive treatment of wrinkles.

The company's Thermage procedure can be performed on any part of the body where treatment of wrinkles is desired. The ThermaCool system uses patented monopolar radiofrequency energy to heat and shrink collagen and tighten the epidermis and subcutaneous tissue while simultaneously cooling and protecting the surface of the skin.

IPO proceeds will be used to market ThermaCool as well as for research and development and a $5 million repayment of the company's working capital line with GE Capital.

Thermage said it had a $6.33 million operating loss on revenues of $40.66 million for 2005, compared with an operating income of $4.97 million on revenues of $50.38 million for the same period in 2004.

Currently Institutional Venture Partners and related entities are the largest shareholders with 17.2% of the equity, followed by Morgenthaler Venture Partners and affiliated entities with 16.9%, Technology Partners funds at 14.4%, funds managed by Essex Woodlands Health Ventures Fund V, LP at 12.68% and Draper Fisher Jurvetson ePlanet Ventures and affiliated entities at 8.9%.

The company has applied to list its stock on the Nasdaq National Market under the symbol "THRM."

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