Kronos shifts $55 million between first- and second-lien term loans

By Sara Rosenberg

New York, Oct. 24 - Kronos Inc. upsized its seven-year covenant-light first-lien term loan to $1.21 billion from $1,155,000,000 and downsized its 71/2-year covenant-light second-lien term loan to $690 million from $745 million, according to a market source.

Pricing on the first-lien term loan firmed at Libor plus 425 basis points, the wide end of the Libor plus 400 bps to 425 bps talk, and the original issue discount was tightened to 99½ from 99, the source said. The 1.25% Libor floor was unchanged.

Meanwhile, pricing on the second-lien term loan firmed at Libor plus 850 bps, versus prior talk of Libor plus 825 bps to 850 bps, and the 1.25% floor and a discount of 99 remained.

Included in the first-lien term loan is 101 repricing protection for one year, and the second-lien term loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, revised from call protection of 103 in year one, 102 in year two and 101 in year three, the source added.

The company's $1,965,000,000 credit facility also provides for a $65 million five-year revolver.

Recommitments were due by 5 p.m. ET on Wednesday.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance debt and fund a dividend.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.