Kinetic Concepts to launch $2.5 billion credit facility on Wednesday

By Sara Rosenberg

New York, Oct. 23 - Kinetic Concepts Inc. will be holding a lender call at 11 a.m. ET on Wednesday to launch a $2.5 billion senior secured credit facility, according to a market source.

Bank of America Merrill Lynch is the arranger on the deal.

The facility consists of a $200 million revolver due Nov. 4, 2016, a $1,618,000,000 term loan C-1 due May 4, 2018, a €248 million term loan C-1 due May 4, 2018 and a $323 million term loan C-2 due Nov. 4, 2016, the source said.

All of the term loans will include a 1.25% Libor floor and will be offered at par. Spread guidance is still to be determined.

Additionally, the term loans will have 101 soft call protection for one year, the source said.

Proceeds will be used to reprice the company's existing senior credit facility.

Commitments are due by 5 p.m. ET on Oct. 30.

When done last year, Kinetic's six-year U.S. and euro term loan B's were priced at Libor/ Euribor plus 575 basis points with a 1.25% Libor floor and its five-year term loan C was priced at Libor plus 525 bps with a 1.25% Libor floor.

Kinetic Concepts is a San Antonio-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.