DJO Global, Inc. ("DJO" or the "Company") today announced that its indirect wholly owned subsidiaries, DJO Finance LLC ("DJOFL") and DJO Finance Corporation, a wholly owned subsidiary of DJOFL ("DJOFC" and together with DJOFL, the "Issuers"), intend to offer, in a private offering subject to market and other conditions, $300 million aggregate principal amount of senior unsecured notes due 2018 (the "notes"). Obligations under the notes will be guaranteed by all existing and future domestic subsidiaries that guarantee DJOFL's existing senior secured credit facilities, senior unsecured notes due 2014 and senior subordinated notes due 2017. DJOFL intends to use the net proceeds from the offering to fund the estimated $254.6 million purchase price for the acquisition of Rikco International, LLC, D/B/A Dr. Comfort ("Dr. Comfort"), a provider of therapeutic footwear, pay estimated fees and expenses associated with the acquisition and the related financing and repay an estimated $25.4 million of borrowings currently outstanding on DJOFL's senior secured revolving credit facility.
The notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in transactions outside the United States under Regulation S of the Securities Act. The initial issuance and sale of the notes will not be registered under the Securities Act, and the notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.