Kronos launches $300 million in first- and second-lien add-on loans

By Sara Rosenberg

New York, Nov. 15 - Kronos Inc. held a call at 1 p.m. ET on Friday to launch $300 million in fungible add-on covenant-light term loans, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The debt consists of a $205 million add-on first-lien term loan due October 2019 that is talked at Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 99, and a $95 million add-on second-lien term loan due April 2020 that is talked at Libor plus 850 bps with a 1.25% Libor floor and a discount of 99, the source said.

Included in the first-lien loan is 101 soft call protection for six months and the second-lien loan has call protection of 103 through October 2015, then 102 for a year and 101 for the following year.

Proceeds will be used to fund a dividend to shareholders.

Commitments are due on Nov. 22.

Along with the add-ons, the company is seeking to amend its existing credit facility to permit the incurrence of the new debt and dividend distribution to shareholders, the source added.

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

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