Acelity to refinance $1.75 billion 10½% notes due 2018 via new issue

By Susanna Moon

Chicago, Sept. 6 – Acelity LP’s wholly owned subsidiaries Kinetic Concepts, Inc. and KCI USA, Inc. plan to redeem $1.75 billion principal amount of their outstanding 10½% second-lien senior secured notes due 2018 using proceeds of a new notes issue.

The companies plan to price $1.75 billion of second-lien senior secured notes due 2021 in a private offering under Rule 144A and Regulation S, according to a company announcement.

The redemption also will be funded using proceeds of a $100 million equity contribution by Acelity's sponsors and cash on hand, including borrowings under the issuers’ revolving credit facility, the release noted.

The new notes offering is contingent upon the substantially concurrent completion of the equity contribution, the release added.

Acelity is a medical device company based in San Antonio.

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