Kinetic Concepts expected to sell $2.15 billion two-part offering of notes in September

By Paul A. Harris

Portland, Ore., Aug. 17 - Kinetic Concepts Inc. is expected to undertake the placement of $2.15 billion of high-yield notes in September, according to market sources.

The deal is expected to feature $1.25 billion of senior second-lien notes and $900 of million senior unsecured notes.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. Inc. are the joint bookrunners.

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 are expected to come from a $2.8 billion credit facility and $1.75 billion of sponsor equity.

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

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