By Paul A. Harris
Portland, Ore., Sept. 8 – KIK Custom Products Inc. priced an upsized $265 million add-on to its 9% senior notes due Aug. 15, 2023 (Caa2/CCC) at 103 to yield 8.243% on Thursday, according to a market source.
The size of the add-on was increased from $235 million.
The reoffer price came at the rich end of the 102.5 to 103 price talk.
Barclays, BMO Securities, Nomura Securities and Macquarie Capital were the joint bookrunners.
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.
| Issuer: | Kronos Acquisition Holdings Inc. (KIK Custom Products Inc.)
|
| Amount: | $265 million, increased from $235 million
|
| Proceeds: | $272.95 million
|
| Maturity: | Aug. 15, 2023
|
| Security description: | Add-on to 9% senior notes due Aug. 15, 2023
|
| Bookrunners: | Barclays, BMO Securities, Nomura Securities, Macquarie Capital
|
| Coupon: | 9%
|
| Price: | 103
|
| Yield: | 8.243%
|
| 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
|
| Trade date: | Sept. 8
|
| Settlement date: | Sept. 13 with accrued interest
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 102.5 to 103
|
| Marketing: | Roadshow
|
| Original issue: | $390 million priced at 89.57 to yield 11% on Aug. 19, 2015
|
| Fungibility: | Rule 144A notes to become immediately fungible with original notes; Regulation S notes to become fungible 40 days after settlement
|
| Total issue size: | $655 million
|
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