Kronos sets Thursday bank meeting for $1.98 billion credit facilities

By Paul A. Harris

Portland, Ore., Oct. 9 - Kronos Inc. unveiled $1,975,000,000 of new credit facilities on Tuesday, according to a market source.

The deal will be presented to lenders at a Thursday morning bank meeting.

Credit Suisse Securities (USA) LLC is the lead.

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are also in the syndicate, a market source said.

The deal features two institutional tranches.

There is a $1.16 billion seven-year covenant lite first-lien term loan with a 1.25% Libor floor and 101 repricing protection.

In addition there is a $750 million 7.5-year covenant lite second-lien term loan with a 1.25% Libor floor, callable in year one at 103, 102 in year two and 101 in year three.

Pricing and original issue discounts remain to be determined.

Kronos also intends to put in place a $65 million five-year revolver.

The Chelmsford, Mass.-based provider of workforce management software plans to use the proceeds to refinance debt and fund a dividend.

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