Item 8.01 Other Events.
As previously disclosed, onFebruary 8, 2023 ,NuVasive, Inc. ("NuVasive") entered into an Agreement and Plan of Merger (the "Merger Agreement") with Globus Medical, Inc. ("Globus Medical") andZebra Merger Sub, Inc. ("Merger Sub"), aDelaware corporation and a wholly owned subsidiary of Globus Medical. The Merger Agreement provides, among other things, that subject to the satisfaction or waiver of the conditions set forth therein, Merger Sub will merge with and intoNuVasive (the "Merger"), withNuVasive surviving the Merger as a wholly owned subsidiary of Globus Medical. OnMarch 10, 2023 , Globus Medical filed a registration statement on Form S-4 (Registration No. 333-270482) with theU.S. Securities and Exchange Commission ("SEC"), which was amended onMarch 24, 2023 (the "Registration Statement") and includes a joint proxy statement/prospectus (the "Joint Proxy Statement/Prospectus"). OnMarch 28, 2023 , each ofNuVasive and Globus Medical filed the definitive version of the Joint Proxy Statement/Prospectus with theSEC (the "Definitive Joint Proxy Statement/Prospectus"), which constitutes the definitive joint proxy statement for the special meetings ofNuVasive and Globus Medical in connection with the Merger and a prospectus for shares of Globus Class A common stock to be issued by Globus Medical in connection with the Merger. As ofApril 17, 2023 , five complaints have been filed by purportedNuVasive stockholders againstNuVasive and its directors in connection with the Merger. The complaints are captioned O'Dell v.NuVasive, Inc. , et al., No. 1:23-cv-02262 (S.D.N.Y., filedMarch 16, 2023 ), O'Conner v.NuVasive, Inc. , et al. No. 1:23-cv-02855 (S.D.N.Y., filedApril 5, 2023 ), Finger v.NuVasive, Inc. et al., No. 1:23-cv-00367 (D. Del., filedMarch 30, 2023 ), Jones v.NuVasive, Inc. et al., No. 1:23-cv-00368 (D. Del., filedMarch 30, 2023 ) (together with the previous three complaints, the "Federal Complaints") and Garfield v. Barry et al., No. 2023CV30076 (Colo. Combined Ct., filedMarch 28, 2023 ) (the "Colorado Complaint," and such complaints collectively, the "Complaints"). Each of the Federal Complaints alleges that the defendants filed or caused to be filed a materially incomplete and misleading preliminary Joint Proxy Statement/Prospectus with theSEC . The Colorado Complaint asserts claims under the Colorado Securities Act andColorado common law and makes a number of allegations, including that the Definitive Joint Proxy Statement/Prospectus contained intentionally false and misleading statements.NuVasive and Globus Medical believe that the claims asserted in the Complaints are without any merit. The defendants deny that any further disclosure beyond that already contained in the Registration Statement or the Definitive Joint Proxy Statement/Prospectus is required under applicable law to supplement the Registration Statement or the Definitive Joint Proxy Statement/Prospectus. Nonetheless, to moot plaintiffs' unmeritorious claims, avoid the risk that litigation may delay or otherwise adversely affect the consummation of the Merger and to minimize the expense of defending against the Complaints, the defendants are making the following supplemental disclosures to the Registration Statement and Definitive Joint Proxy Statement/Prospectus. Nothing in this Current Report on Form 8-K shall be deemed an admission of the legal necessity or materiality under applicable laws of any of the supplemental disclosures set forth herein. Supplemental Disclosures This supplemental information to the Registration Statement and Definitive Joint Proxy Statement/Prospectus should be read in conjunction with the Definitive Joint Proxy Statement/Prospectus, which should be read in its entirety. All page references in the information below are to pages in the Joint Proxy Statement/Prospectus in the Registration Statement and the Definitive Joint Proxy Statement/Prospectus, and all terms used but not defined below shall have the meanings set forth in the Registration Statement and Definitive Joint Proxy Statement/Prospectus. To the extent the following information differs from or conflicts with the information contained in the Registration Statement and Definitive Joint Proxy Statement/Prospectus, the information set forth below shall be deemed to supersede the respective information in the Registration Statement and Definitive Joint Proxy Statement/Prospectus. New text within the amended and supplemented language from the Registration Statement and Definitive Joint Proxy Statement/Prospectus is indicated in bold and underlined text (e.g., bold, underlined text), and deleted text within the amended and supplemented language from the Registration Statement and Definitive Joint Proxy Statement/Prospectus is indicated in strikethrough text (e.g., strikethrough text). The disclosure under the heading "Summary" is hereby amended and supplemented by adding the following after the last paragraph on page 17 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus: 2
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Window Shop Period
The Merger Agreement provided for a Window Shop Period, which began from the execution of the merger agreement and ended at11:59 p.m. (New York time) onMarch 10, 2023 . During the Window Shop Period,NuVasive did not receive any NuVasive Acquisition Proposals and Globus did not receive any Globus Acquisition Proposals. The disclosure under the heading "The Merger-Background of the Merger" is hereby amended and supplemented by replacing the final paragraph on page 57 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following: OnSeptember 24, 2021 , at the request of Mr.David C. Paul , Executive Chairman of Globus, an in-person meeting was held to discuss the possibility of a business combination betweenNuVasive and Globus. Present at that meeting wereMr. Paul ,Dave Demski , who was then the Chief Executive Officer of Globus,Daniel Wolterman , Chairman of the NuVasive Board, andChristopher Barry , the Chief Executive Officer ofNuVasive . At this meeting, Messrs. Paul, Demski, Wolterman and Barry discussed, among other things, the potential benefits and risks of a merger between Globus andNuVasive as well as potential next steps. The disclosure under the heading "The Merger-Background of the Merger" is hereby amended and supplemented by replacing the second full paragraph on page 60 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following: OnNovember 28, 2022 , at the request ofMr. Paul to resume discussions regarding the proposed merger, Messrs. Wolterman and Barry met in person with Messrs. Paul and Scavilla. At that meeting, the parties discussed the merits of a merger betweenNuVasive and Globus, including potential synergies that could be achieved from the merger. Messrs. Wolterman and Barry also indicated to Messrs. Paul and Scavilla that the exchange ratio proposed in theNovember 15 Letter undervaluedNuVasive and was thus not acceptable toNuVasive .
The disclosure under the heading "The Merger-Opinion of Globus's Financial Advisor" is hereby amended and supplemented by replacing the second full paragraph on page 80 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following:
Goldman Sachs derived ranges of illustrative enterprise values forNuVasive by adding the ranges of present values it derived above. Goldman Sachs then subtracted from the range of illustrative enterprise values it derived forNuVasive the amount ofNuVasive's net debt (including the net present value ("NPV") of certain contingent liabilities relating to certain historical acquisitions, including the acquisition ofSimplify Medical Pty Limited byNuVasive (collectively, the "NuVasive Contingent Liabilities")) of$650 million as ofDecember 31, 2022 , as calculated using information provided by the management ofNuVasive and approved for Goldman Sachs' use by the management of Globus, to derive a range of illustrative equity values forNuVasive . Goldman Sachs then divided the range of illustrative equity values it derived by the number of fully diluted outstanding shares of NuVasive Common Stock as ofFebruary 6, 2023 of 54.2 million, as provided by the management ofNuVasive and approved for Goldman Sachs' use by the management of Globus, calculated using the treasury stock method, to derive a range of illustrative present values per share of NuVasive Common Stock ranging from$39.61 to$48.76 .
The disclosure under the heading "The Merger-Opinion of Globus's Financial Advisor" is hereby amended and supplemented by replacing the first full paragraph on page 81 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following:
Goldman Sachs then subtracted the amount ofNuVasive's net debt (including the NPV of the NuVasive Contingent Liabilities) of$648 million ,$495 million and$311 million , for each of the fiscal years 2023 through, 2024 and 2025, respectively, each as provided by the management of 3 -------------------------------------------------------------------------------- Globus and approved for Goldman Sachs' use by the management of Globus, from the respective implied enterprise values in order to derive a range of illustrative equity values as ofDecember 31 forNuVasive for each of the fiscal years 2023 through 2025. Goldman Sachs then divided these implied equity values by the projected year-end number of fully diluted outstanding shares of NuVasive Common Stock for each of the fiscal years 2023 through, 2024 and 2025 of 53.6 million, 54.5 million and 55.5 million, respectively, calculated using information provided by the management ofNuVasive and approved for Goldman Sachs' use by the management of Globus, to derive a range of implied future values per share of NuVasive Common Stock. Goldman Sachs then discounted these implied future equity values per share of NuVasive Common Stock toDecember 31, 2022 , using an illustrative discount rate of 9.2%, reflecting an estimate ofNuVasive's cost of equity. Goldman Sachs derived such discount rate by application of the CAPM, which requires certain company-specific inputs, including a beta forNuVasive , as well as certain financial metrics forthe United States financial markets generally. This analysis resulted in a range of implied present values of$42.32 to$49.49 per share of NuVasive Common Stock. The disclosure under the heading "The Merger-Opinion of Globus's Financial Advisor" is hereby amended and supplemented by replacing the table on page 81 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety as follows: Selected Transactions Transaction EV /LTM Value Adjusted Announcement Date Acquiror Target (in millions) EBITDA October 2022 Orthofix Medical Inc. SeaSpine Holdings Corporation$239 NA May 2019 3M Company Acelity, Inc.$6,725 15.0x November 2018 Boston Scientific Corporation BTG plc$3,936 15.5x November 2018 Colfax Corporation DJO Global, Inc.$3,150 11.7x September 2018 Medtronic plc Mazor Robotics Ltd.$1,640 NA August 2018 Stryker Corporation K2M Group Holdings, Inc.$1,289 NA October 2017 TPG Capital, L.P. Exactech, Inc.$738 16.9x
September 2015 Dentsply International Inc. Sirona Dental Systems, Inc.$5,251 16.1x February 2015 Cyberonics, Inc. Sorin S.p.A.$1,603 11.7x October 2014 Steris Corporation Synergy Health plc$1,900 13.0x October 2014 Wright Medical Group, Inc. Tornier N.V.$3,300 NA April 2014 Zimmer Holdings, Inc. Biomet, Inc.$13,350 12.1x February 2014 Smith & Nephew plc ArthroCare
Corporation$1,534 16.9x 4
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The disclosure under the heading "The Merger-Opinion of Globus's Financial Advisor" is hereby amended and supplemented by replacing the last paragraph beginning on page 82 and continuing onto page 83 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following:
Goldman Sachs derived ranges of illustrative enterprise values for Globus on a standalone basis by adding the ranges of present values it derived above. Goldman Sachs then subtracted from the range of illustrative enterprise values it derived for Globus on a standalone basis the amount of Globus's net debt (including the NPV of certain contingent liabilities relating to the acquisition of Excelsius Surgical and other transactions by Globus (collectively, the "Globus Contingent Liabilities")) on a standalone basis, of$(942) million as ofDecember 31, 2022 , as provided by and approved for Goldman Sachs' use by the management of Globus, to derive a range of illustrative equity values for Globus. Goldman Sachs then divided the range of illustrative equity values it derived by the corresponding number of fully diluted outstanding shares of Globus Common Stock as ofFebruary 6, 2023 , the range of which was 103.4 million to 104.3 million, as provided by and approved for Goldman Sachs' use by the management of Globus, calculated using the treasury stock method, to derive a range of illustrative present values per share of Globus Class A Common Stock ranging from$73.27 to$84.74 .
The disclosure under the heading "The Merger-Opinion of Globus's Financial Advisor" is hereby amended and supplemented by replacing the second full paragraph on page 83 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following:
Goldman Sachs then subtracted the amount of Globus's net debt (including the NPV of the Globus Contingent Liabilities) on a standalone basis of$(1,059) million ,$(1,188) million and$(1,287) million , for each of the fiscal years 2023 through, 2024 and 2025, respectively, each as provided by and approved for Goldman Sachs' use by the management of Globus, from the respective implied enterprise values in order to derive a range of illustrative equity values as ofDecember 31 for Globus for each of the fiscal years 2023 through 2025. Goldman Sachs then divided these implied equity values by the projected year-end number of fully diluted outstanding shares of Globus Common Stock for each of the fiscal years 2023 through, 2024 and 2025, the ranges of which were 103.6 million to 104.2 million, 104.2 million to 104.8 million and 104.6 million to 105.2 million, respectively, calculated using information provided by and approved for Goldman Sachs' use by the management of Globus, to derive a range of implied future values per share of Globus Class A Common Stock. Goldman Sachs then discounted these implied future equity values per share of Globus Class A Common Stock toDecember 31, 2022 , using an illustrative discount rate of 9.8%, reflecting an estimate of Globus's cost of equity. Goldman Sachs derived such discount rate by application of the CAPM, which requires certain company-specific inputs, including a beta for Globus, as well as certain financial metrics forthe United States financial markets generally. This analysis resulted in a range of implied present values of$67.60 to$76.35 per share of Globus Class A Common Stock.
The disclosure under the heading "The Merger-Opinion of Globus's Financial Advisor" is hereby amended and supplemented by replacing the first full paragraph on page 84 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following:
Goldman Sachs derived ranges of illustrative enterprise values for Globus pro forma for the Merger by adding the ranges of present values it derived above. Goldman Sachs then subtracted from the range of illustrative pro forma enterprise values it derived for Globus, the pro forma net debt (including the NPV of the NuVasive Contingent Liabilities, the NPV of the Globus Contingent Liabilities and estimate transaction fees with respect to the Merger) of Globus of$(267) million as ofDecember 31, 2022 , as provided by and approved for Goldman Sachs' use 5 -------------------------------------------------------------------------------- by the management of Globus, to derive a range of illustrative equity values for Globus on a pro forma basis. Goldman Sachs then divided the range of illustrative equity values it derived by the corresponding pro forma number of fully diluted outstanding shares of Globus Common Stock as ofFebruary 6, 2023 , the range of which was 144.4 million to 145.5 million, as provided by and approved for Goldman Sachs' use by the management of Globus, calculated using the treasury stock method, to derive a range of illustrative present values per share of Globus Class A Common Stock ranging from$77.66 to$93.53 .
The disclosure under the heading "The Merger-Opinion of Globus's Financial Advisor" is hereby amended and supplemented by replacing the third full paragraph on page 84 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following:
Goldman Sachs then subtracted the amount of Globus's pro forma net debt (including the NPV of the NuVasive Contingent Liabilities, the NPV of the Globus Contingent Liabilities and estimate transaction fees with respect to the Merger) of$(415) million ,$(795) million and$(1,226) million , for each of the fiscal years 2023 through, 2024 and 2025, respectively, each as provided by and approved for Goldman Sachs' use by the management of Globus, from the respective implied enterprise values in order to derive a range of illustrative equity values as ofDecember 31 for Globus on a pro forma basis for each of the fiscal years 2023 through 2025. Goldman Sachs then divided these implied equity values by the projected year-end number of fully diluted outstanding shares of Globus Common Stock on a pro forma basis for each of fiscal years 2023 through, 2024 and 2025, the ranges of which were 144.8 million to 146.3 million, 146.6 million to 147.8 million and 147.8 million to 148.9 million, respectively, calculated using information provided by and approved for Goldman Sachs' use by the management of Globus, to derive a range of implied future values per share of Globus Class A Common Stock on a pro forma basis. Goldman Sachs then discounted these implied future equity values per share of Globus Class A Common Stock toDecember 31, 2022 , using an illustrative discount rate of 9.7%, reflecting an estimate of Globus's pro forma cost of equity. Goldman Sachs derived such discount rate by application of the CAPM, which requires certain company-specific inputs, including a beta for Globus andNuVasive , as well as certain financial metrics forthe United States financial markets generally. This analysis resulted in a range of implied present values of$69.62 to$85.58 per share of Globus Class A Common Stock pro forma for the Merger. The disclosure under the heading "The Merger-Opinion ofNuVasive's Financial Advisor-Opinion ofBofA Securities Inc. " is hereby amended and supplemented by replacing the final paragraph that begins on page 89 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following: Discounted Cash Flow Analysis.BofA Securities performed a discounted cash flow analysis ofNuVasive to calculate the estimated present value of the standalone unlevered, after-tax free cash flows thatNuVasive was forecasted to generate duringNuVasive's fiscal years 2023 through 2027 based on the Revised NuVasive Standalone Projections.BofA Securities calculated terminal values forNuVasive by applying last-twelve-month EBITDA terminal multiples of 9.5x to 11.5x toNuVasive's fiscal year 2027 estimated adjusted EBITDA, which implied a perpetuity growth rate ranging between 5.2% and 6.4%. The cash flows and terminal values were then discounted to present value as ofDecember 31, 2022 , assuming a mid-period convention for cash flows, using discount rates ranging from 9.0% to 11.0% based onNuVasive's weighted average cost of capital. From the resulting enterprise values,BofA Securities deducted net debt as of the end of the fourth quarter of fiscal year 2022 (treating the amount of the 2023 Convertible Notes, defined below in the section entitled "-Call Spread Transactions," and the amount ofNuVasive's convertible senior notes due 2025, as debt) to derive equity values. This analysis indicated the following approximate implied per share equity value reference ranges forNuVasive as compared to the per share price of NuVasive Common Stock implied by the Exchange Ratio, based on the closing price of Globus Class A Common Stock onFebruary 7, 2023 : 6
-------------------------------------------------------------------------------- The disclosure under the heading "The Merger-Opinion ofNuVasive's Financial Advisor-Opinion ofBofA Securities Inc. " is hereby amended and supplemented by replacing the third bullet point on page 90 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following: • the following publicly available equity research analyst price targets for NuVasive Common Stock available as ofFebruary 7, 2023 , which had a price target range (when discounted one year by a 10.5% cost of equity) of$34.50 to$57.00 per share: Price Target (prior to 1-year Broker discount) Citi$63.00 RBC Capital Markets $52.00 Barclays$52.00 Truist Securities $51.00 Piper Sandler Companies$50.00 Cowen & Company $50.00 Stifel Nicolaus $50.00 Wells Fargo Securities $47.00 Canaccord Genuity$46.00 Morgan Stanley$44.00 Loop Capital Markets $42.00 Jefferies$40.00 JP Morgan$38.00 The disclosure under the heading "The Merger-Opinion ofNuVasive's Financial Advisor-Opinion ofBofA Securities Inc. " is hereby amended and supplemented by replacing the first paragraph on page 92 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following: Discounted Cash Flow Analysis.BofA Securities performed a discounted cash flow analysis of Globus to calculate the estimated present value of the standalone unlevered, after-tax free cash flows that Globus was forecasted to generate during Globus's fiscal years 2023 through 2027 based on the Globus Standalone Projections.BofA Securities calculated terminal values for Globus by applying terminal multiples of 18.0x to 22.0x to Globus's fiscal year 2027 estimated adjusted EBITDA, which implied a perpetuity growth rate ranging between 6.0% and 7.4%. The cash flows and terminal values were then discounted to present value as ofDecember 31, 2022 , assuming a mid-period convention for cash flows, using discount rates ranging from 8.5% to 10.5%, based on Globus's weighted average cost of capital. From To the resulting enterprise values,BofA Securities deducted net debt added net cash of$942 million as of the end of the fourth quarter of fiscal year 2022, based on the Globus Standalone Projections, to derive equity values. This analysis indicated the following approximate implied per share equity value reference ranges for Globus as compared to the closing price of Globus Class A Common Stock onFebruary 7, 2023 : The disclosure under the heading "The Merger-Opinion ofNuVasive's Financial Advisor-Opinion ofBofA Securities Inc. " is hereby amended and supplemented by replacing the second bullet point on page 92 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following: • the following publicly available equity research analyst price targets for Globus Class A Common Stock available as ofFebruary 7, 2023 , which had a price target range (when discounted one year by a 9.5% cost of equity) of$59.25 to$82.25 per share: Price Target (prior to 1-year Broker discount)
Loop Capital Markets $90.00 Truist Securities $85.00 RBC Capital Markets $85.00 Needham$84.00 7
--------------------------------------------------------------------------------Wells Fargo Securities $82.00 Morgan Stanley$78.00 Piper Sandler Companies$75.00 Jefferies$75.00 Canaccord Genuity$75.00 Barclays$70.00 BTIG$71.00 Oppenheimer$66.00 Stifel Nicolaus $65.00 The disclosure under the heading "The Merger-Opinion ofNuVasive's Financial Advisor-Opinion ofBofA Securities Inc. " is hereby amended and supplemented by replacing the second paragraph on page 93 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following: For the NuVasive Common Stock on a stand-alone basis,BofA Securities used the implied reference range indicated in its discounted cash flow analysis described above under "-Summary of NuVasive Financial Analyses-Discounted Cash Flow Analysis."BofA Securities then performed the same analysis by calculating the range of implied per share equity values allocable to holders of NuVasive Common Stock on a pro forma basis, giving effect to the Merger, by assuming approximately 28.1% pro forma ownership, based on the number of Globus Class A Common Stock estimated to be issued to holders of NuVasive Common Stock in the Merger, utilizing the results of the standalone discounted cash flow analyses forNuVasive and Globus described above under " -Summary of Material NuVasive Financial Analyses-Discounted Cash Flow Analysis" and "-Summary of Material Globus Financial Analyses-Discounted Cash Flow Analysis," and taking into account the net present value of the Assumed Synergies and Dis-synergies and the decreased cash from the Merger to the Combined Company of$75 million based onNuVasive management's estimates of transaction expenses.BofA Securities calculated the approximate net present value of Assumed Synergies and Dis-synergies to the Combined Company as ofDecember 31, 2022 using a discount rate range of 9.0% to 11.0%. PerNuVasive management guidance, the analysis assumed a terminal value for the Assumed Synergies and Dis-synergies beyond 2027 assuming a range of perpetuity growth rates of 2.0% to 3.0%.
The disclosure under the heading "The Merger-Certain NuVasive Unaudited Prospective Financial Information" is hereby amended and supplemented by replacing the first sentence of the first full paragraph on page 103 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following:
As described in the section titled "-Certain Globus Unaudited Prospective Financial Information," Globus management prepared and provided toNuVasive andBofA Securities certain unaudited prospective financial information of Globus on a standalone basis for fiscal years 2023 through 2027, which financial information was defined previously as the "Globus Standalone Projections", except that the calculation of Globus's Unlevered Free Cash Flow described in the section titled "-Certain Globus Unaudited Prospective Financial Information" differs fromNuVasive's calculation of Globus's Unlevered Free Cash Flow (which was provided toBofA Securities and used for purposes of its analyses) (such calculations, the "NuVasive UFCF Calculations"). The disclosure under the heading "The Merger-Certain NuVasive Unaudited Prospective Financial Information" is hereby amended and supplemented by replacing the first sentence of the second full paragraph on page 103 of the Registration Statement and Definitive Joint Proxy Statement/Prospectus in its entirety with the following:
The NuVasive Combined Company Projections and the NuVasive UFCF Calculations . . .
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