KIK Custom launches $850 million term loan at Libor plus 450-475 bps

By Sara Rosenberg

New York, Aug. 4 – KIK Custom Products Inc. launched on Tuesday its $850 million seven-year senior secured covenant-light term loan with price talk of Libor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $1,075,000,000 credit facility also includes a $225 million five-year asset-based revolver.

Commitments are due at noon ET on Aug. 14, the source added.

Barclays, BMO Capital Markets Corp., Nomura Securities International Inc. and Macquarie Capital (USA) Inc. are the bookrunners on the debt.

Proceeds will be used to help fund the buyout of the company by Centerbridge Partners LP from CI Capital Partners.

Net first-lien leverage is 4.1 times, and net total leverage is 5.9 times.

Closing is subject to customary conditions and approvals.

KIK is a Toronto-based developer and marketer of pool and spa treatment products and a manufacturer of household and personal care products.

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