New Issue: Acelity prices $1.75 billion five-year notes at par to yield 9 5/8%

By Paul A. Harris

Portland, Ore., Sept. 13 – Acelity LP Inc. priced $1.75 billion of five-year second-lien senior secured notes (Caa1/B-) at par to yield 9 5/8% on Tuesday, according to a syndicate source.

The yield printed at the tight end of yield talk in the 9½% area. Early guidance was also in the mid-9% range.

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

The San Antonio-based medical device company, which is issuing the notes via its subsidiaries Kinetic Concepts, Inc. and KCI USA, Inc., plans to use the proceeds, together with proceeds from an equity contribution and cash on hand, including a draw on the revolving credit facility, to redeem all of its second-lien notes.

Issuers:	Kinetic Concepts, Inc. and KCI USA, Inc.
Amount:	$1.75 billion
Maturity:	Oct. 1, 2021
Securities:	Second-lien senior secured notes
Bookrunners:	Goldman Sachs & Co. (left books), BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Nomura Securities, SunTrust Robinson Humphrey Inc., RBC Capital Markets, UBS Investment Bank
Coupon:	9 5/8%
Price:	Par
Yield:	9 5/8%
Call protection:	Two years
Trade date:	Sept. 13
Settlement date:	Sept. 20
Ratings:	Moody's: Caa1
	S&P: B-
Distribution:	Rule 144A and Regulation S
Price talk:	9½% area
Marketing:	Roadshow

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