After the break-up with rival buyer ConvaTec became official last night, news leaked of a date between Kinetic Concepts Inc. (NYSE:KCI) and suitor Apax Partners LLP to discuss the terms of the $6.3 billion acquisition.
The transaction will include a $2.6 billion term loan and a $200 million revolving line of credit arranged through Bank of America Corp. Morgan Stanley, Credit Suisse Group AG and Royal Bank of Canada, according to Bloomberg Businessweek’s undisclosed source.
The deal also includes $1.25 billion in senior secured notes and $900 million in senior unsecured bonds, Bloomberg wrote.
Apax and a pair of Canadian pension funds agreed July 12 to buy KCI for a 6 percent premium over its closing price that day. The London-based PE firm and its partners plan to finance the buyout with about $5 billion in debt, backed by lenders Bank of America Corp., Credit Suisse Group AG and Morgan Stanley.
The now-defunct ConvaTec bid just beat the expiration of a 40-day "go-shop" period during which KCI could solicit other offers.
KCI shares slipped slightly on the news that ConvaTec was out of the picture, losing 42 cents in mid-morning trading today, coming in at $64.97, just a half a percent difference from yesterday’s close at $65.39.
The meeting between KCI and Apax is set to take place tomorrow at 9:00 a.m. EST in New York.
DeviceTalks Minnesota's leadership track is designed to provide attendees with insights on topics such as:
Use code SAVE15 to save 15%!