KCI Announces Proposed $1.65B Offering of Senior Notes
Kinetic Concepts, Inc. (NYSE: KCI) KCI USA, Inc. and investment funds advised by Apax Partners and controlled affiliates of Canada Pension Plan Investment Board and Public Sector Pension Investment Board (the “Sponsors”) today announced that Chiron Merger Sub, Inc. (“Merger Sub”) intends to commence an offering on or about October 11, 2011, of $1,650 million in aggregate principal amount of second lien senior secured notes due 2019, comprised of a Dollar tranche and a Euro tranche, and $900 million in aggregate principal amount of senior notes due 2019 (collectively, the “senior notes”). The senior notes are being issued in connection with the previously announced merger of the Company with Merger Sub. Upon consummation of the acquisition, the Company and KCI USA, Inc. will assume all of the obligations of Merger Sub under the senior notes and will become the co-issuers of the senior notes.
The Company and the Sponsors expect that the net proceeds of the offering will be used to partially fund the previously announced merger and to refinance the Company's existing debt. The offering is contingent on the completion of the acquisition and dependent on market conditions.
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