UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
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Pursuant to Section 13 or 15(d) of the |
Securities Exchange Act of 1934 |
_____________________________ |
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Date of Report (date of earliest event reported): |
June 18, 2001 |
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Commission file number 1-9913
KINETIC CONCEPTS, INC.
(Exact name of registrant as specified in its charter)
Texas | 74-1891727 |
________________________ | ___________________________ |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
8023 Vantage Drive
San Antonio, Texas 78230
Telephone Number: (210) 524-9000
____________________________________________________
(Address, including zip code, and telephone number, including area code,
of registrant's principal executive offices)
Item 5. Other Events
Kinetic Concepts, Inc. issued a press release on June 18, 2001 regarding the refinancing of Senior Secured Credit Facilities. A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Kinetic Concepts, Inc. press release dated June 18, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| KINETIC CONCEPTS, INC. | |
| (REGISTRANT) | |
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| By: | /s/ WILLIAM M. BROWN |
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| __________________________________ |
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| William M. Brown |
Date: June 22, 2001
EXHIBIT NO. DESCRIPTION OF EXHIBIT
99.1 Kinetic Concepts, Inc. press release dated June 18, 2001
CONTACT: WILLIAM M. BROWN
(210) 255-6047
Kinetic Concepts, Inc. Announces Restructuring of
Senior Credit Facilities
SAN ANTONIO, June 18, 2001 -- Kinetic Concepts, Inc. today announced the completion and funding of a $95 million Tranche D Term Loan as part of a refinancing of its Senior Secured Credit Facilities. The refinancing was accomplished by means of an Amended and Restated Credit and Guarantee Agreement effective June 15, 2001. Proceeds from the Tranche D Term Loan were used to pay down existing indebtedness, including $60 million outstanding under the Tranche A Term Loan, $8 million outstanding under the Acquisition Facility and $26 million under the Revolving Credit Facility with the remaining proceeds used to pay fees and expenses associated with this transaction.
Significant revenue growth in the Company's negative pressure wound therapy devices has had the short-term effect of increasing working capital needs for KCI. The Company believes that the refinancing will provide the Company with the liquidity necessary to continue investing in the growth of this product line while meeting its operating and debt service obligations. The Tranche D Term Loan amortizes at 1% per year through December 31, 2005 with a final payment of $90.7 million due March 31, 2006. The initial interest rate for the Tranche D Term Loan is LIBOR plus 3.125% or 7.115%.
Long-term obligations as of March 31, 2001, on a pro forma basis, giving effect to the refinancing transaction, would have been as follows (in thousands):
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| Pro Forma |
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Senior Credit Facilities: |
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Revolving bank credit facility |
| $ 27,500 |
| $ (25,900) |
| $ 1,600 |
Acquisition credit facility |
| 8,348 |
| (8,384) |
| - |
Term loans: |
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Tranche A due 2003 |
| 87,500 |
| (60,000) |
| 27,500 |
Tranche B due 2004 |
| 87,075 |
| - |
| 87,075 |
Tranche C due 2005 |
| 87,075 |
| - |
| 87,075 |
Tranche D due 2006 |
| - |
| 95,000 |
| 95,000 |
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| $ 297,534 |
| $ 716 |
| $ 298,250 |
9 5/8% Senior Subordinated Notes Due 2007 |
| 200,000 |
| - |
| 200,000 |
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| $497,534 |
| $716 |
| $498,250 |
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Future maturities of long-term debt at March 31, 2001, on a pro forma basis, giving effect to the refinancing transaction, would have been as follows (in thousands):
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| Pro Forma |
| Pro Forma |
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2001 |
| $ 34,848 |
| $ (33,023) |
| $ 1,825 |
2002 |
| 34,849 |
| (32,099) |
| 2,750 |
2003 |
| 58,637 |
| (26,787) |
| 31,850 |
2004 |
| 85,500 |
| 950 |
| 86,450 |
2005 |
| 83,700 |
| 950 |
| 84,650 |
Thereafter |
| $200,000 |
| $90,725 |
| $290,725 |
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| $497,534 |
| $716 |
| $498,250 |
Kinetic Concepts, Inc. develops and markets innovative therapeutic healing systems that address skin breakdown, circulatory problems and pulmonary complications associated with patient immobility and chronic wounds. The Company's healing systems include specialty beds, mattress replacement systems, negative pressure wound therapy and related medical devices. Kinetic Concepts serves hospitals, long-term care facilities and patients in home care settings both in the U.S. and abroad.
This press release contains forward-looking statements that involve risks and uncertainties including, but not limited to, projections of future operating results, market penetration and the financial condition of the Company. Certain risk factors that may impact the forward-looking statements set forth herein are detailed from time-to-time in the Company's Securities and Exchange Commission filings.
