Kinetic Concepts discloses term loan pricing guidance with launch

By Sara Rosenberg

New York, Oct. 24 - Kinetic Concepts Inc. set price talk on its term loans as the lender call to launch the deal took place on Wednesday, according to a market source.

The $1,618,000,000 term loan C-1 due May 4, 2018 is talked at Libor plus 400 basis points to 425 bps, the €248 million term loan C-1 due May 4, 2018 is talked at Euribor plus 425 bps to 450 bps, and the $323 million term loan C-2 due Nov. 4, 2016 is talked at Libor plus 375 bps to 400 bps, the source said.

All of the term loans include a 1.25% Libor floor, as well as 101 soft call protection for one year, and are being offered at par.

The company's $2.5 billion senior secured credit facility also provides for a $200 million revolver due Nov. 4, 2016.

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

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and UBS Securities LLC are the lead banks on the deal.

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

When completed last year the U.S. 61/2-year term loan B was sized at $1.63 billion and priced at Libor plus 575 bps with a 1.25% Libor floor, the euro 61/2-year term loan B was sized at €250 million and priced at Euribor plus 575 bps with a 1.25% floor, and the five-year term loan C was sized at $325 million and 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.