Ensono launches $723 million term loan at Libor plus 400-425 bps

By Sara Rosenberg

New York, May 6 – Ensono Holdings LLC launched on Thursday its $723 million seven-year covenant-lite first-lien term loan B (B2/B) with price talk of Libor plus 400 basis points to 425 bps with a 0.75% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The first-lien term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

The company’s $1.073 billion of credit facilities also include a $100 million revolver (B2/B) and a $250 million privately placed second-lien term loan (Caa2/CCC).

Morgan Stanley Senior Funding Inc., UBS Investment Bank, KKR Capital Markets, Barclays, Mizuho, MUFG, RBC Capital Markets and Societe Generale are the joint lead arrangers and bookrunners on the deal. Morgan Stanley is the agent.

Commitments are due at 5 p.m. ET on May 20, the source added.

Proceeds will be used to help fund the buyout of the company by KKR from Charlesbank Capital Partners and M/C Partners, refinance existing debt and pay fees and expenses related to the transaction.

Leverage is expected to be 6x.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

Ensono is a Chicago-based hybrid IT services provider.

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