Kinetic Concepts gets $4.95 billion debt commitment for buyout

By Sara Rosenberg

New York, July 14 - Kinetic Concepts Inc. revealed that it has a commitment for a $2.8 billion senior secured credit facility, a $900 million senior unsecured bridge loan and a $1.25 billion senior secured second-lien bridge loan, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

A portion of the second-lien bridge loan may be available in euros.

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

Proceeds will be used to help fund the acquisition of the company by Apax Partners, Canada Pension Plan Investment Board and the Public Sector Pension Investment Board.

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.

Other funds for the transaction will come from about $1.75 billion in 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-based medical technology company.

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