By Paul A. Harris
Portland, Ore., Aug. 19 – KIK Custom Products Inc. priced a $390 million issue of 9% eight-year senior notes (Caa2/CCC) at 89.57 to yield 11% on Wednesday, according to an informed source.
The coupon, yield and price came on top of final price talk. That talk widened from earlier official talk that had the deal coming at a discount with a 10˝% all-in yield.
Initial guidance was in the mid-9% context, market sources said.
There were also covenant changes, including revisions to the restricted payments and permitted liens covenants, and changes in the covenant package’s definitions of total consolidated debt, secured debt and fixed charge coverage ratio. Also, language in the change-of-control provision was broadened.
Joint bookrunner Barclays will bill and deliver. BMO Securities, Nomura and Macquarie Capital were also joint bookrunners.
The issuing entity is special purpose vehicle Kronos Acquisition Holdings Inc.
Proceeds will be used to help fund the buyout of KIK Custom Products by Centerbridge Partners LP from CI Capital Partners.
KIK Custom Holdings is a Toronto-based supplier of pool and spa treatment products and household and personal care products.
| Issuer: | Kronos Acquisition Holdings Inc. (KIK Custom Products Inc.)
|
| Face amount: | $390 million
|
| Proceeds: | $349.32 million
|
| Maturity: | Aug. 15, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays (bill and deliver), BMO Securities, Nomura, Macquarie Capital
|
| Coupon: | 9%
|
| Price: | 89.57
|
| Yield: | 11%
|
| Call: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2018, then callable at 106.75
|
| Equity clawback: | 40% at 109 until Aug. 15, 2018
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 19
|
| Settlement date: | Aug. 26
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9% coupon at 89.57 to yield 11%, revised from 10˝% all-in yield at a discount
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
