By Paul A. Harris
Portland, Ore., Feb. 9 - Kinetic Concepts, Inc. and KCI USA, Inc. priced $750 million 12½% senior notes due Nov. 1, 2019 (Caa1/CCC+/) at 98.75 to yield 12¾% on Thursday, according to a market source.
The reoffer price and yield came on top of talk.
Morgan Stanley & Co. LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and RBC Capital Markets were the joint bookrunners.
Proceeds will be used as part of the financing backing the buyout of the company by Apax Partners, Canada Pension Plan Investment Board and the Public Sector Pension Investment Board.
The 12½% notes were sold to the underwriters in October, at which time a $1.75 billion issue of 10½% second-lien senior secured notes due Nov. 1, 2018 was successfully syndicated.
Kinetic Concepts is a San Antonio-based medical technology company.
| Issuer: | Kinetic Concepts, Inc. and KCI USA, Inc.
|
| Amount: | $750 million
|
| Maturity: | Nov. 1, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, RBC Capital Markets
|
| Co-manager: | UBS Securities LLC
|
| Coupon: | 12½%
|
| Price: | 98.75
|
| Yield: | 12¾%
|
| First call: | Callable on Nov. 1, 2015 at 106.25
|
| Equity clawback: | 35% at 112.50 until Nov. 1, 2014
|
| Trade date: | Feb. 9
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 12¾% area at 98.75
|
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