Acelity’s KCI starts roadshow for $400 million secured notes offering

By Paul A. Harris

Portland, Ore., Feb. 1 – Kinetic Concepts Inc. and KCI USA, Inc., wholly owned subsidiaries of Acelity LP Inc., started a roadshow on Monday in New York for a $400 million offering of five-year first-lien senior secured notes (expected ratings Ba3/BB-), according to a market source.

An investor conference call was scheduled to get underway at 12:30 p.m. ET on Monday.

The roadshow moves to New Jersey and Boston on Tuesday.

BofA Merrill Lynch is the left bookrunner for the Rule 144A for life and Regulation S deal. Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Goldman Sachs & Co., Nomura and RBC Capital Markets are the joint bookrunners. UBS Investment Bank is the co-manager.

The notes become callable after two years at par plus 50% of the coupon and feature a two-year 40% equity clawback and a 101% poison put.

The San Antonio-based provider of wound care therapies plans to use the proceeds to pay off Acelity’s senior term E-2 credit facility due Nov. 4, 2016 and for general corporate purposes.

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