High-Technology Massage Chair Company Poised for Growth
LONG BEACH, Calif.–(BUSINESS WIRE)–Human Touch®, the U.S. market leader of innovative lifestyle and massage products today has announced the successful completion of an exchange offer for its existing 7 1/4% senior notes due 2011 in exchange for cash, warrants to acquire common stock and Senior Secured Second Lien PIK Notes due in 2014 where associated interest will accrue to the principal, resulting in a net reduction of nearly 77% of outstanding debt and a substantial reduction in cash interest expense for the company going forward.
This successful refinancing of the Company’s capital structure will provide the Company with added flexibility and cash flow to pursue its marketing and growth strategies and will permit management to focus additional time and resources on expanding the Company’s product offerings and customer base. “We are pleased to have completed this exchange with nearly 95% of our bondholders on a long-term solution to improve our capital structure,” said David Wood, Chief Executive Officer. “We are committed to our mission of providing innovative lifestyle products and experiences that deliver indispensable, life changing benefits to an ever growing number of consumers and through this transaction we will be even better positioned to serve our customers and resellers now and in the future.”
Following the successful completion of the bond exchange offer, the Company’s credit agreement with Comerica Bank was extended to provide the Company with additional flexibility to fund its ongoing operations and growth. Human Touch believes its total liquidity, strong management of current assets, and mitigation of interest expense, place the company in a strengthened position during this challenging economic climate to further pursue its strategic objectives. Jefferies & Company, Inc. served as financial advisor to the Company in connection with the exchange offer and Gibson, Dunn & Crutcher LLP served as legal advisor to the Company in connection with the exchange offer and the bank credit agreement extension.
About Human Touch
Human Touch, celebrating its 30th anniversary as the leading brand of high-technology, design-oriented massage chairs and products for today’s modern and traditional living spaces, offers advanced technology and designs for consumers seeking to incorporate health and wellness into their everyday routines. Appealing to back pain sufferers, sports enthusiasts, and those looking to relax from today’s hectic lifestyles, Human Touch delivers high-quality Robotic Massage® chairs, zero-gravity recliners, and other industry-leading massage products that help people feel better, play better and perform better. Human Touch products are available at back care specialty stores, fine furniture stores across the country, through international retailers and distributors in more than 48 countries, and online at www.humantouch.com.