Kronos adds two more lead banks to $1.125 billion LBO financing credit facility

By Sara Rosenberg

New York, May 4 - Kronos Inc. has added Credit Suisse and JPMorgan to join Wachovia as lead banks on its proposed $1.125 billion senior secured credit facility, according to a DEFM14A filed with the Securities and Exchange Commission on Friday.

The facility consists of a $60 million revolver, a $665 million first-lien term loan and a $400 million second-lien term loan.

Proceeds will be used to help fund the buyout of Kronos by Hellman & Friedman and JMI Equity for $55.00 in cash per share of common stock. The transaction is valued at $1.8 billion.

Other LBO financing will come from equity financing of $752.9 million, cash, cash equivalents and short-term investments of Kronos.

The acquisition is expected to be completed in the third quarter, subject to the receipt of shareholder approval, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other required regulatory approvals, and other customary closing conditions. There is no financing condition.

Kronos is a Chelmsford, Mass., provider of human capital management services.

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