DJO’s Recapitalization

Cravath represented Credit Suisse as dealer manager in DJO Finance LLC and DJO Finance Corporation’s US$300 million Reg D exchange offer with the holders of their senior subordinated notes for new third‑lien notes. Cravath also represented the initial purchasers, led by Credit Suisse, in connection with the US$1.02 billion 144A/Reg. S high‑yield debt offering of second‑lien notes of DJO Finco Inc., a subsidiary that was merged into DJO Finance LLC. Finally, Cravath represented Macquarie Capital in connection with a new US$1.055 billion first‑priority term loan agreement with DJO Finance LLC and DJO Finance Corporation. All these transactions were coordinated with a new ABL facility as part of a complete recapitalization of the outstanding debt of DJO.

DJO Finance LLC is a global developer, manufacturer and distributor of high‑quality medical devices that provide solutions for musculoskeletal health, vascular health and pain management. DJO Finance LLC is a portfolio company of private equity sponsor Blackstone Group, L.P. All the transactions closed on May 7, 2015. Proceeds of the offering and the term loans were used to refinance outstanding debt of DJO.

The Cravath team included partner Kris F. Heinzelman and associates Raffael M. Fiumara, Matthew G. Jones, William F. Roegge and Hyatt M. Howard on securities matters and partner Paul H. Zumbro, senior attorney Sarah F. Rosen and associates Ryan M. Farha and Caitlin M. Hyduke on banking matters. Sean M. Gholz also worked on securities matters.