MASSDEVICE ON CALL — K2M Group’s (NSDQ:KTWO) initial public offering landed right on target with $120 million in net proceeds, even though the company lowered its per-share price.
The company, which makes spinal implants, had said in its most recent estimates that the IPO would net $120 million with shares selling for $16-$18 apiece. K2M ultimately priced its shares at $15, offering more than 8.8 million units.
As promised, the company used the funds to retire all of its debt and pay off all dividends on its convertible stock. The rest will go toward working capital and general expenses. K2M had about $22.3 million in outstanding debt on its shareholder notes, $23.5 million outstanding on a credit facility and $15.7 million in unpaid dividends on Series A and B preferred stock, according to regulatory filings, for a grand total of about $61.5 million.
The Leesburg, Va.-based company 1st announced its plans for a U.S. IPO early this year, saying in March that the launch could be worth $100 million. In April, the company said it planned to offer 8.8 million shares at a maximum price of $18 apiece.
KTWO shares closed last night at $15.10.
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