Kinetic Concepts buyout financing expected to include loan, bonds

By Sara Rosenberg

New York, July 13 - Kinetic Concepts Inc. is expected to get a new credit facility and issue high-yield bonds to help fund its acquisition by Apax Partners, Canada Pension Plan Investment Board and the Public Sector Pension Investment Board, according to a market source.

Morgan Stanley & Co. Inc., Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are the lead banks on the debt financing.

Under the agreement, the consortium is buying Kinetic Concepts for $68.50 per share in cash in a transaction valued at $6.3 billion, including outstanding debt.

Given the size of the buyout, the source believes that the credit facility and bonds could be multi-billion pieces each way.

Other funds for the transaction will come from equity.

There is a 40-day go-shop period.

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.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.