KIK Custom Products to price $235 million tap of 9% notes due 2023 on Thursday

By Paul A. Harris

Portland, Ore., Sept. 7 – KIK Custom Products Inc. plans to price a $235 million add-on to its 9% senior notes due Aug. 15, 2023 (expected ratings Caa2/CCC) on Thursday, according to a market source.

The deal was scheduled to be marketed on a Wednesday morning investor conference call.

Barclays, BMO Securities, Nomura Securities and Macquarie Capital are the joint bookrunners for the Rule 144A for life and Regulation S add-on.

The notes feature a make-whole call at Treasuries plus 50 bps until Aug. 15, 2018, then become callable at 106.75. The notes also feature a 40% equity clawback at 109 until Aug. 15, 2018 and a 101% poison put.

The Toronto-based supplier of pool and spa treatment products and household and personal care products plans to use the proceeds to refinance its $235 million term loan B-2 due 2022 and to pay the related prepayment premium.

The issuing entity is Kronos Acquisition Holdings Inc.

The original $390 million issue priced at 89.57 to yield 11% on Aug. 19, 2015.

The Rule 144A notes will become immediately fungible with the original notes. The Regulation S notes will become fungible 40 days after the settlement date.

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