Kronos firms $1 billion second-lien term loan at Libor plus 825 bps

By Sara Rosenberg

New York, Oct. 20 – Kronos Inc. finalized pricing on its $1 billion eight-year covenant-light second-lien term loan (Caa2/CCC) at Libor plus 825 basis points, the low end of the Libor plus 825 bps to 850 bps talk, according to a market source.

The second-lien term loan still has a 1% Libor floor, an original issue discount of 99 and call protection of non-callable for one year, then at 102 in year two and 101 in year three.

The company’s $3.4 billion credit facility also provides for a $100 million five-year revolver (B2/B-) and a $2.3 billion seven-year covenant-light first-lien term loan B (B2/B-).

Pricing on the first-lien term loan B firmed at talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99.5, and, as before, the debt has 101 soft call protection for six months.

Nomura, Jefferies Finance LLC and Macquarie Capital (USA) Inc. are the leads on the deal.

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

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

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