Kinetic Concepts gets $550 million term loan, $650 million revolver

By Marisa Wong

Madison, Wis., Jan. 7 - Kinetic Concepts, Inc. entered into a new credit agreement with Bank of America, NA on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The new credit agreement replaces the company's existing credit agreement with Bank of America dated May 19, 2008.

The new agreement consists of a $550 million term A facility that matures in January 2016 and a $650 million revolving credit facility maturing in January 2016, which includes a $75 million letter-of-credit subfacility and a $25 million swingline loan subfacility.

Kinetic may increase the total amount of its commitments under the credit agreement at any time but by no more than $500 million.

The company borrowed $550 million under the term A facility on Friday.

Proceeds of the facilities will be used to refinance existing debt and for general corporate purposes.

Borrowings will accrue interest at Libor plus 125 bps to 225 bps for loans.

The company must also pay a fee of 25 bps to 40 bps on the daily amount by which the revolving credit commitment exceeds the revolving credit loans, excluding swing line loans, and a fee equal to the margin for Libor loans on the daily amount available to be drawn under each letter of credit.

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

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