Item 1.01. Entry into a Material Definitive Agreement
On September 17, 2009, SNTC Holding, Inc. (which we refer to as the Seller),
a wholly owned subsidiary of HLTH Corporation, entered into a Stock Purchase
Agreement with Aurora Equity Partners III L.P. and Aurora Overseas Equity
Partners III, L.P. (which we refer to as the Purchasers), providing for the sale
of HLTH's Porex unit to the Purchasers. A copy of the press release announcing
the entry into the Stock Purchase Agreement is filed as Exhibit 99.1 to this
Current Report and is incorporated herein by reference.
Under the Stock Purchase Agreement, the Purchasers are acquiring all of the
outstanding capital stock of Porex Corporation. The purchase price consists of
$74.5 million in cash payable at closing and $67.5 million in senior secured
notes (which we refer to as the Senior Secured Notes), issuable to the Seller
under a Note Purchase Agreement to be entered into at closing. The Senior
Secured Notes will accrue interest at a rate of 8.75% per annum, payable
quarterly. The principal of the Senior Secured Notes is to be paid down by
$10 million per year on the anniversary of the closing for each of the first
three years and by a final payment of $37.5 million on the fourth anniversary of
the closing. The Senior Secured Notes will be secured by assets of Porex
Corporation. The purchase price is subject to customary adjustment based on the
amount of Porex's working capital at the time the sale is completed.
The Stock Purchase Agreement contains representations and warranties,
covenants, indemnification provisions and closing conditions that are customary
for transactions of this type, including covenants by the Seller related to the
conduct of the Porex business between the signing of the Stock Purchase
Agreement and completion of the sale. HLTH has agreed to guarantee the full and
timely payment and performance by the Seller of its obligations under the Stock
Purchase Agreement. Completion of the transaction is subject to customary
closing conditions, including the expiration or termination of the waiting
period under the Hart-Scott-Rodino Act. A copy of the Stock Purchase Agreement
is filed as Exhibit 2.1 to this Current Report.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits. The following exhibits are filed herewith:
Exhibit
Number Description
2.1* Stock Purchase Agreement, dated as of September 17, 2009, among SNTC
Holding, Inc., Aurora Equity Partners III L.P. and Aurora Overseas
Equity Partners III, L.P.
99.1 Press Release, dated September 18, 2009, regarding entry into the
Stock Purchase Agreement filed as Exhibit 2.1 to this Current Report
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* Exhibits and
schedules to
Exhibit 2.1 are
omitted from
this filing
pursuant to
Item 601(b)(2)
of
Regulation S-K.
The Registrant
will furnish
copies of any
of the omitted
exhibits and
schedules to
the Securities
and Exchange
Commission upon
request.