Kinetic Concepts sets Wednesday U.S. launch for $2.8 billion facility

By Sara Rosenberg

New York, Oct. 3 - Kinetic Concepts Inc. has scheduled a bank meeting for 9 a.m. ET on Wednesday in New York to launch its proposed $2.8 billion senior secured credit facility (Ba3/BB-), according to a market source.

The deal was presented to European investors with a bank meeting that took place in London on Monday.

Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are the lead arrangers and bookrunners on the deal, and UBS Securities LLC is a co-manager.

The facility consists of a $2.6 billion seven-year term loan and a $200 million five-year revolver, the source said.

Proceeds will be used to help fund the buyout of the company by Apax Partners, Canada Pension Plan Investment Board and the Public Sector Pension Investment Board for $68.50 per share in cash in a transaction valued at $6.3 billion, including outstanding debt.

Other funds for the acquisition are expected to come from $2.15 billion of bonds and about $1.75 billion of equity.

Closing is expected in the second half of this year, subject to certain conditions, including shareholder and regulatory approvals. It is not subject to financing.

A special meeting for shareholders to approve the transaction is set for Oct. 28.

Kinetic Concepts is a San Antonio-based medical technology company.

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