Kronos mulls pricing increases in $1.36 billion loan package

By Paul A. Harris

Portland, Ore., Dec. 20 - Kronos Inc. is mulling price increases and covenant tweaks in its $1.36 billion of bank loan financing deals, market sources said on Tuesday.

Pricing on the new $370 million incremental first-lien term loan B (B1/B) due December 2018 would increase to Libor plus 500 basis points from 475 bps.

The deal features a 1.25% Libor floor and a 101 soft call. Original issue discount talk is 98.

Meanwhile pricing on the $355 million amended and extended second-lien term loan would increase by 50 bps, to Libor plus 875 bps from 825 bps. The second-lien deal is also expected to come with a 25 bps most favored nation provision. In addition a modification to the restricted payments covenant is under consideration.

Pricing on the $635 million amended and extended first-lien loan would increase by 25 bps to Libor plus 475 bps from 450 bps.

Commitments on the amend-and-extend tranches are due by noon ET on Wednesday.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Jefferies & Co. and Deutsche Bank Securities Inc. are the bookrunners on the deal.

Proceeds will be used to fund a distribution to shareholders.

Existing lenders are being offered a 50 bps amendment fee.

Kronos is a Chelmsford, Mass.-based provider of workforce management software.

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