KIK Custom flexes $850 million term loan to Libor plus 500 bps

By Sara Rosenberg

New York, Aug. 19 – KIK Custom Products Inc. increased pricing on its $850 million seven-year senior secured covenant-light term loan (B2/B-) to Libor plus 500 basis points from talk of Libor plus 450 bps to 475 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 97.5 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 1% Libor floor.

Final commitments are due by noon ET on Thursday, the source added.

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

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.

Other funds for the transaction will come from $390 million of senior unsecured notes.

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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