KIK Custom Products to launch $715 million credit facility on Thursday

By Sara Rosenberg

New York, April 30 - KIK Custom Products Inc. is scheduled to hold a bank meeting at 10:30 a.m. ET in New York on Thursday to launch a $715 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, RBC Capital Markets and Scotia Capital (USA) Inc. are the lead banks on the deal.

The facility consists of a $75 million ABL revolver, a $420 million six-year first-lien covenant-light term loan and a $220 million 61/2-year second-lien covenant-light term loan, the source said.

Price talk on the first-lien term loan is Libor plus 425 basis points with a 1.25% Libor floor and an original issue discount of 99, and talk on the second-lien loan is Libor plus 825 bps with a 1.25% floor and a discount of 98, the source said.

Included in the first-lien term loan is 101 repricing protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Proceeds will be used to refinance existing bank debt.

Commitments are due on May 15, the source added.

KIK is a Concord, Ont.-based manufacturer of retail-branded bleach.

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