K-MAC Enterprises finalizes $115 million term loan at 99.5 OID

By Sara Rosenberg

New York, Feb. 27 – K-MAC Enterprises Inc. (MIC Glen LLC) firmed the original issue discount on its non-fungible $115 million incremental covenant-lite first-lien term loan B-2 due July 2028 (B3/B-) at 99.5, the tight end of revised talk of 99.25 to 99.5 and tighter than initial talk of 99, according to a market source.

Pricing on the term loan remained at SOFR plus 425 basis points with a 0.5% floor.

The term loan still has 101 soft call protection for six months.

Earlier in syndication, the spread on the term loan was set at the high end of the SOFR plus 400 bps to 425 bps talk.

BMO Capital Markets, Goldman Sachs Bank USA, KKR Capital Markets and RBC Capital Markets are the arrangers on the deal.

Proceeds will be used to repay an existing $105 million second-lien term loan and revolving credit facility borrowings.

Mubadala Capital is the sponsor.

K-MAC is a Fayetteville, Ark.-based fast food restaurant operator.

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