Orthofix International Makes Second Partial Debt Prepayment and Announces Additional Office Consolidation
BOSTON–(BUSINESS WIRE)–Orthofix International N.V. (NASDAQ: OFIX – News) (the Company) announced that in addition to its regularly scheduled debt payments, today it made a $7 million prepayment in advance of the scheduled maturity, permanently reducing its current credit facility by that amount.
Orthofix Executive Vice President and Chief Financial Officer Bob Vaters stated, “This is the second debt repayment we have made ahead of the schedule maturity date within the last three months. It demonstrates not only our desire to continue deleveraging our balance sheet, but our improved cash generation over the last few months. With the expected continuation of cash flow improvements we will look for additional opportunities to pay down debt early, increasing the Company’s flexibility to execute its operating plan.”
The Company also announced plans to close its Huntersville, N.C. office by the end of February 2010. The relocation of the corporate accounting and finance functions from this facility was completed in 2008, and the remaining employees will be relocated prior to the expiration of the current lease in February of next year.
It appears as though Ramius is forcing OFIX to make some changes. No one wants to lose their job so they are doing the things that they should have years ago. It almost seems like they are taking the initial letter from Ramius and making all the changes they requested except changing BOD members.