Kissner launches $425 million term loan at Libor plus 425-450 bps

By Sara Rosenberg

New York, Aug. 3 – Kissner Milling Co. Ltd. launched on Wednesday its $425 million seven-year first-lien covenant-light term loan (B3/B) with price talk of Libor plus 425 basis points to 450 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 $475 million credit facility also includes a $50 million five-year ABL revolver.

Barclays, Bank of America Merrill Lynch and Jefferies Finance LLC are the bookrunners on the deal.

Commitments are due on Aug. 19, the source added.

Proceeds will be used to fund the acquisition of BSC Holdings Inc., to refinance 7¼% senior secured notes due 2019 and to fund a shareholder distribution.

Net first-lien leverage and net total leverage is 3.9 times.

The sponsors are Metalmark Capital, Demetree Salt LLC and Silverhawk Capital Partners.

Kissner is an Ontario-based producer and distributor of bulk rock salt and packaged specialty deicing products.

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