Kinetic Concepts to launch $580 million credit facility Monday

By Sara Rosenberg

New York, July 11 - Kinetic Concepts Inc. is scheduled to hold a bank meeting for a $580 million credit facility on Monday. Credit Suisse First Boston and Morgan Stanley are the lead arrangers on the deal.

The facility consists of a $100 million six-year revolver with an interest rate of Libor plus 250 basis points and a 50 basis points commitment fee, and a $480 million seven-year term loan B with an interest rate of Libor plus 275 basis points.

Proceeds will be used by the San Antonio bed manufacturer to refinance existing debt.

As of March 31, the company's senior credit facility consisted of a revolver due December 2003 with approximately $39 million available for borrowing, a term loan A due 2003 with approximately $17.6 million outstanding, a term loan B due 2004 with approximately $57 million outstanding, a term loan C due 2004 with approximately $57 million outstanding, a term loan D due 2006 with approximately $62.7 million outstanding and a term loan E due 2005 with approximately $20 million outstanding, according to a filing with the Securities and Exchange Commission.

The existing term loan A and the revolver carry an interest rate of Libor plus 175 basis points, the term loan B has an interest rate of Libor plus 250 basis points, the term loan C and term loan E have an interest rate of Libor plus 275 basis points and the term loan D has an interest rate of Libor plus 262.5 basis points.

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