MediCor Closes $50 Million Senior Secured Convertible Debt Financing and Debt Restructuring
April 27 2006 - 10:00AM
PR Newswire (US)
LAS VEGAS, April 27 /PRNewswire-FirstCall/ -- MediCor Ltd.
(OTC:MDCR) (BULLETIN BOARD: MDCR) , the world's third largest
manufacturer and distributor of breast implants, today announced it
has raised $50 million in a private placement. The financing
involved the sale of senior secured convertible notes and warrants
to purchase common stock. Concurrently, Sirius Capital LLC, a
private equity investment fund affiliated with the Company's
Chairman and founder, Donald K. McGhan, converted $37.5 million of
outstanding loans to the Company into a subordinated convertible
note, with similar terms as the senior secured convertible notes,
and a warrant to purchase common stock. Certain of the Company's
remaining debt was subordinated to the new senior notes. UBS
Investment Bank advised the Company and provided private placement
services in connection with the transaction. About MediCor Ltd.
MediCor was founded by Donald K. McGhan, Chairman of the Board, and
a pioneer of the modern day breast implant industry. The Company
acquires, develops, manufactures and markets products for medical
specialties in the aesthetic, plastic and reconstructive surgery
and dermatology markets. Products include surgically implantable
prostheses for aesthetic, plastic and reconstructive surgery and
scar management products, all of which are sold worldwide to
hospitals, surgery centers and physicians through a combination of
distributors and direct sales personnel. MediCor's strategy is to
be the leading integrator of selected international medical device
technologies and corporations. The Company intends to achieve that
goal through the expansion of its existing product lines and
offerings and through the acquisition of companies and other
assets, including intellectual property rights or distribution
rights. Forward-Looking Statements This release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are based
upon the current beliefs and expectations of MediCor's management
and are subject to significant risks and uncertainties. Actual
results may differ from those set forth in the forward-looking
statements. There are a number of factors that could cause actual
results or events to differ from those set forth in the
forward-looking statements, including: risks that the Company will
not be able to obtain additional financing to fund its growth in
accordance with its strategy; the risk of failure to or delay in
obtaining regulatory approval to market the Company's products;
risks that competitors will obtain regulatory approval to market
their products before the Company obtains similar approval; risks
related to integration of acquired businesses; the risk of
instability in the U.S. or international capital markets;
disruption from transactions disrupting normal business operations;
the outcome of legal proceedings; and the risk of new and changing
regulations in the U.S. and internationally. Additional factors
that could cause MediCor's results to differ materially from those
described in the forward-looking statements can be found in
MediCor's Annual Report on Form 10-KSB for the year ended June 30,
2005, and in subsequent reports filed quarterly on Form 10-Q, all
of which have been filed with the Securities and Exchange
Commission and is available at the Securities and Exchange
Commission's Internet site (http://www.sec.gov/). DATASOURCE:
MediCor Ltd. CONTACT: Marc S. Sperberg, U.S., +1-702-932-4560, ext.
308, for MediCor Ltd.
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