Spinal Device Company K2M’s IPO Hits Spot

Two short weeks ago, spinal device company K2M Group Holdings, Inc. announced that its IPO price would be $15.00 and that this would likely result in around a $120 million fund raise. Now it’s announced the closing of its initial public offering of 8,825,000 shares of common stock at that very price, so its smiles all round.

Background

The net proceeds from the offering come to approximately $120.0 million, after deducting underwriting discounts and estimated offering expenses. As planned, K2m has used a portion of the net proceeds from the offering to retire all indebtedness outstanding under the notes held by certain of its shareholders, to repay all of the outstanding borrowings under its asset-based revolving credit facility, and to pay all accumulated and unpaid dividends on its Series A redeemable convertible preferred stock and its Series B redeemable convertible preferred stock that were converted to common stock upon consummation of the offering. In addition, the Company intends to use a portion of the net proceeds from the offering for working capital and general corporate purposes.

Source: K2M Group Holdings, Inc.

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