Kinetic Concepts finalizes spreads on term loans C-1 and C-2

By Sara Rosenberg

New York, Nov. 5 - Kinetic Concepts Inc. firmed pricing on its $1,618,000,000 term loan C-1 due May 4, 2018 at Libor plus 425 basis points, the wide end of the Libor plus 400 bps to 425 bps talk, according to a market source.

In addition, pricing on the €248 million term loan C-1 due May 4, 2018 firmed at Euribor plus 450 bps the high side of the Euribor plus 425 bps to 450 bps guidance.

Pricing on the $323 million term loan C-2 due Nov. 4, 2016 came at Libor plus 375 bps, the tight end of the Libor plus 375 bps to 400 bps talk, the source said.

As before, all of the term loans include a 1.25% 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.

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.

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