Kinetic Concepts Inc. (KCI), which makes wound-care products and
is being bought by Apax Partners Inc., is reducing the size of its
offering of speculative-grade bonds to $1.65 billion from $2.55
billion, Bloomberg News reported Monday, citing a person with
knowledge of the deal.
The San Antonio-based company delayed marketing of $900 million
of senior unsecured notes, the source said. Kinetic still plans to
sell $1.65 billion of senior secured second-lien debt due 2019 in
euros and dollars, the person said.
Kinetic agreed in July, before credit markets weakened, to be
taken private. So-called junk bonds have lost 8.2% since July while
debt graded triple-C and lower has plummeted 15% amid investor
concern over debt levels in Europe and the faltering U.S. economic
recovery.
Apax, a London private-equity firm, and its investment partners
announced on July 13 their planned buyout of Kinetic.
Full story at
http://www.bloomberg.com/news/2011-10-10/kinetic-cuts-bond-sale-to-1-65-billion-removes-unsecured-notes.html
-Dow Jones Newswires; 212-416-2900