Kinetic Concepts launches $2.15 billion of bridge loans to investors

By Sara Rosenberg

New York, Aug. 2 - Kinetic Concepts Inc. launched its $2.15 billion of bridge loans on Tuesday, according to a market source.

The company has received a commitment for a $900 million senior unsecured bridge loan and a $1.25 billion senior secured second-lien bridge loan, with a portion of the second-lien bridge loan possibly available in euros.

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

Proceeds will be used to help fund the buyout of the company by Apax Partners, Canada Pension Plan Investment Board and the Public Sector Pension Investment Board for $68.50 per share in cash in a transaction valued at $6.3 billion, including outstanding debt.

Other funds for the acquisition will come from a $2.8 billion senior secured credit facility and about $1.75 billion in equity.

The credit facility, which is expected as post-Labor Day business, consists of $2.6 billion of term loan debt and a $200 million revolver.

Lead banks on the credit facility match those that are on the bridge loan, but Bank of America is the left lead.

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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