Kinetic Concepts to launch $350 million add-on term loan on Thursday

By Sara Rosenberg

New York, Aug. 7 - Kinetic Concepts Inc. is set to hold a call on Thursday to launch a $350 million add-on term loan, according to a market source.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are the lead banks on the deal.

Price talk on the add-on is Libor plus 350 basis points with a 1% Libor floor and an original issue discount that is still to be determined, the source said.

Proceeds will be used to help fund the $485 million acquisition of Systagenix, a U.K.-based provider of advanced wound care products.

The transaction is expected to close in the fourth quarter, subject to customary conditions, including applicable antitrust approvals.

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

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