New Issue: Acelity’s KCI prices $400 million 7 7/8% five-year notes at par

By Paul A. Harris

Portland, Ore., Feb. 2 – Kinetic Concepts Inc. and KCI USA, Inc., wholly owned subsidiaries of Acelity LP Inc., priced a $400 million issue of five-year first-lien senior secured notes (Ba3/BB-) at par to yield 7 7/8% on Tuesday, according to market sources.

The yield printed at the tight end of yield talk in the 8% area.

BofA Merrill Lynch was the left bookrunner. Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Goldman Sachs & Co., Nomura and RBC Capital Markets were the joint bookrunners.

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.

Issuers:	Kinetic Concepts, Inc. and KCI USA, Inc., wholly owned subsidiaries of Acelity LP Inc.
Amount:	$400 million
Maturity:	Feb. 15, 2021
Securities:	First-lien senior secured notes
Left bookrunner:	BofA Merrill Lynch
Joint bookrunners:	Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey, Goldman Sachs & Co., Nomura, RBC Capital Markets
Co-manager:	UBS Investment Bank
Coupon:	7 7/8%
Price:	Par
Yield:	7 7/8%
Call:	Make-whole call at Treasuries plus 50 bps until Feb. 15, 2018, then callable at 103.938
Trade date:	Feb. 2
Settlement date:	Feb. 9
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	Rule 144A for life and Regulation S
Price talk:	8% area
Marketing:	Roadshow

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