The company has fully repaid all of its outstanding indebtedness, including the $80 million revolving line of credit with JP Morgan Chase Bank and both the $100 million term loan and $30 million incremental term loan commitment with Ares Capital Corporation. The company will also redeem all of the outstanding shares of Series A Convertible Preferred Stock for total cash consideration of approximately $67 million. After giving effect to the repayment of debt and transaction expenses, the company has approximately $190 million in cash and cash equivalents, which will be reduced by approximately $137 million after the company redeems the Series A Convertible Preferred and pays tax on the gain from the OEM sale, both of which are expected to occur by September 30, 2020.
Effective immediately, the company’s name has changed to Surgalign Holdings Inc., and the company’s ticker symbol on the NASDAQ will change to “SRGA.” Trading under the new ticker symbol is expected to begin on Thursday, July 23, 2020.
As previously announced, the Board of Directors appointed Terry M. Rich as the company’s new president and CEO, effective immediately. Rich previously served as RTI’s President of Global Spine. Rich’s appointment follows Camille Farhat retiring from his role as President and CEO after completion of the sale of the company’s OEM business. Farhat will remain employed by the company for a brief period of time to assist with the transition of responsibilities. Rich also replaced Farhat on the company’s Board of Directors.
“I am excited to lead Surgalign as we complete our transition to a global pure-play spine company,” said Terry Rich, President and CEO, Surgalign. “We believe we have a tremendous foundation that I have been a part of building over the last eight months, and with the recent addition of highly experienced leaders, as well as the financial flexibility provided by the sale of the OEM business, we will pursue our long term goal of driving double digit topline growth through our strategy of build, innovate, and acquire.”
As previously announced, the Board of Directors appointed Jonathon M. Singer as the company’s new COO, effective immediately. Singer will continue to serve as the company’s CFO.
Also as previously announced, the Board of Directors appointed Stuart F. Simpson as the company’s new Chairman of the Board and Curt Selquist as the company’s Lead Independent Director of the Board, effective immediately.