August 23, 2016 5:30 PM ET

Healthcare Equipment and Supplies

Company Overview of Kinetic Concepts, Inc.

Company Overview

Kinetic Concepts, Inc. develops wound healing technologies, medicines, and therapies for caregivers, healthcare professionals, and patients in the United States and internationally. It offers V.A.C., a wound healing modality that delivers negative pressure wound therapy for healing; V.A.C.Ulta, a negative pressure wound therapy system; ABThera, an open abdomen negative pressure therapy; and Prevena, a negative pressure product for the management of closed surgical incisions that continue to drain following sutured or stapled closure. The company also offers Graftjacket, a regenerative tissue matrix for the repair or replacement of damaged or inadequate integumental tissue, such as diabetic f...

12930 Interstate Highway 10 West

San Antonio, TX 78249

United States

Founded in 1976

Phone:

210-524-9000

Fax:

210-255-6998

Key Executives for Kinetic Concepts, Inc.

Chief Executive Officer, President and Director
Age: 50
Interim Chief Financial Officer, Vice President and Corporate Controller
Senior Vice President of Operations
Age: 57
President of Kci Volunteer Council
Group President of Businesses and Innovation
Age: 42
Compensation as of Fiscal Year 2016.

Kinetic Concepts, Inc. Key Developments

Kinetic Concepts, Inc. (KCI) and KCI USA Offer $190 Million of Additional 7.875% First Lien Senior Secured Notes

Acelity reported the pricing of the private offering by its subsidiaries, Kinetic Concepts, Inc. (KCI) and KCI USA, of $190 million in aggregate principal amount of 7.875% first lien senior secured notes due 2021. The company said that the Notes will be treated as a single series with the $400 million of 7.875% first lien senior secured notes due 2021 that were issued on February 9, by the Issuers. The Issuers intend to use the gross proceeds of the Notes offering, together with cash on hand, to repay the remaining portion of the non-extended term loan borrowings under the Issuers' Senior Dollar Term E-1 Credit Facility due to mature on May 4, 2018, together with accrued interest thereon, and to pay fees and expenses related to such repayment and the Notes offering. The offering is expected to close on June 22, subject to customary closing conditions.

Kinetic Concepts, Inc. and KCI USA, Inc. Propose Private Offering of $190 Million of Additional 7.875% First Lien Senior Secured Notes

Acelity L.P. Inc. (“Acelity”), announced that its wholly-owned subsidiaries, Kinetic Concepts, Inc. (“KCI”) and KCI USA, Inc. (“KCI USA” and, together with KCI, the “issuers”), intend, subject to market and other customary conditions, to offer $190 million in aggregate principal amount of 7.875% first lien senior secured notes due 2021 in a private offering. The notes will be treated as a single series with the $400 million of 7.875% first lien senior secured notes due 2021 that were issued on February 9, 2016 by the issuers. The issuers intend to use the net proceeds of the notes offering, together with cash on hand, to repay the remaining portion of the non-extended term loan borrowings under the issuers’ senior Dollar Term E-1 credit facility due to mature on May 4, 2018, together with accrued interest, and to pay fees and expenses related to such repayment and the notes offering. The offering of the notes will be made in a private transaction in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended, only to “qualified institutional buyers” in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act.

Kinetic Concepts, Inc. and KCI USA, Inc. Enter Amendments to Credit Agreement

Kinetic Concepts, Inc. and KCI USA, Inc. entered into an Amendment No. 9 to the credit agreement governing their senior secured credit facilities, pursuant to which certain lenders agreed to amend and extend the maturity date for a portion of the existing Term E-1 Loans outstanding under such senior secured credit facilities. Such extended term loans will mature on November 4, 2020, with an earlier springing maturity tied to the maturity date of the Borrowers’ 12.5% senior unsecured notes due 2019 and the maturity date of the Borrowers’ 10.5% second lien senior secured notes due 2018, in each case, if more than $250 million of such notes remain outstanding 90 days prior to their respective maturity dates. In addition, certain lenders agreed to provide incremental Term F Loans, the proceeds of which were used in full to repay a portion of the remaining non-extended Term E-1 Loans. Pursuant the Credit Agreement Extension Amendment, Term F Loans denominated in dollars will bear interest at a rate equal to, at the Borrowers’ election, a Eurocurrency rate plus 4.00% or an adjusted base rate plus 3.00% and Term F Loans denominated in euros will bear interest at a rate equal to, at the Borrowers’ election, a Eurocurrency rate plus 4.00% or an adjusted base rate plus 3.00%. The Eurocurrency rate is subject to a floor of 1.00%, and the adjusted base rate is subject to a floor of 2.00%. In addition, certain other covenants were amended in connection with the Credit Agreement Extension Amendment, including with respect to the incurrence of incremental facilities and the making of restricted payments. After giving effect to the Credit Agreement Extension Amendment, the Borrowers will have an aggregate principal amount of $1,707.0 million of Term F Loans denominated in dollars and €239.5 million ($272.8 million) of Term F Loans denominated in euros outstanding, with $195.9 million of non-extended Term E-1 Loans denominated in dollars outstanding.

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Recent Private Companies Transactions

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