ArthroCare Closes $75 Million Financing

AUSTIN, Texas–(BUSINESS WIRE)–ArthroCare Corp. (Pink Sheets: ARTCNews) today announced that it has closed its previously announced financing with One Equity Partners (OEP), the global private equity investment arm of JPMorgan Chase & Co.

In connection with the financing, OEP has purchased $75 million of newly-issued ArthroCare Series A Convertible Preferred Stock, which will be convertible into shares of ArthroCare common stock at $15.00 per share, a premium over the closing price of the Company’s common stock on August 14, 2009 and the 30-day trading average. Cumulative dividends on the ArthroCare preferred stock will be payable-in-kind at an annual rate of 3.0% for five years after the preferred stock is issued, and a make-whole adjustment will apply if OEP elects to convert its shares before September 2014. Upon the close of the transaction today, and in conjunction with OEP’s investment, Chris Ahrens and Greg Belinfanti, both Partners of OEP, will join ArthroCare’s Board of Directors.

Mr. Ahrens, age 33, is a Managing Director of OEP and, prior to joining OEP in 2001, worked at Goldman Sachs. He currently serves on the Boards of Carlson Wagonlit Travel, Systagenix Wound Management, Travel Leaders Group and Vertrue. Mr. Ahrens received his A.B. from Princeton University.

Josh Sandberg

Josh Sandberg is the President of Ortho Spine Partners and Partner for The De Angelis Group. He also serves as Co-Founder and Editor of OrthoSpineNews.

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