Bloomberg News

Kinetic $1.75 Billion Junk Bond Sale Marks Biggest Since July

October 25, 2011

Oct. 25 (Bloomberg) -- Kinetic Concepts Inc., the wound care company that’s being bought by Apax Partners Inc., sold $1.75 billion of debt in the biggest speculative-grade bond offering in three months.

Kinetic, which had planned to sell $1.65 billion of the debt, sold the 10.5 percent notes at 98.2 cents on the dollar to yield 10.9 percent, according to data compiled by Bloomberg. The San Antonio-based company’s offering is the biggest since HCA Inc. issued $5 billion of debt on July 26, Bloomberg data show.

The firm agreed in July, before credit markets weakened, to be taken private in the largest leveraged buyout since Lehman Brothers Holdings Inc. failed in 2008. Relative yields on speculative-grade debt, rated below Baa3 by Moody’s Investors Service and lower than BBB- by Standard & Poor’s, have tumbled 112 basis points this month to 729 basis points, or 7.29 percentage points, according to Bank of America Merrill Lynch index data.

To contact the reporter on this story: Sapna Maheshwari in New York at

To contact the editor responsible for this story: Pierre Paulden at

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