Kronos increases add-on second-lien term loan size to $175 million

By Sara Rosenberg

New York, Nov. 21 - Kronos Inc. lifted the size of its add-on second-lien term loan due April 2020 to $175 million from $95 million, according to a market source.

Pricing on the second-lien add-on is still Libor plus 850 basis points with a 1.25% Libor floor and an original issue discount of 99.

The company is also getting a $205 million add-on first-lien term loan due October 2019 that is priced at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.

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.

Credit Suisse Securities (USA) LLC is the lead bank on the now $380 million in fungible add-on covenant-light term loans, up from $300 million.

Proceeds will be used to fund a dividend to shareholders.

Commitments are due at 1 p.m. ET on Friday.

In connection 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.

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

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