Kinetic Concepts to close on $500 million revolver by July 31

By Sara Rosenberg

New York, July 20 - Kinetic Concepts, Inc. plans to close on a new $500 million five-year revolving credit facility on or about July 31, company officials said in a conference call Friday.

Syndication on the revolver was well oversubscribed, officials added.

Proceeds will be used to repay the outstanding balance of $114.1 million due on the company's existing senior credit facility.

In addition, after the required notice period, the company plans to redeem the remaining $68.1 million due under its 7 3/8% senior subordinated notes due August 2013.

The new revolver is designed to provide enhanced strategic and operational flexibility and capacity with fewer restrictive covenants and a lower overall cost of capital.

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

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