By Paul A. Harris
Portland, Ore., Dec. 17 – KIK Consumer Products priced a downsized $1 billion amount of high-yield notes in two tranches on Thursday, according to market sources.
The deal, which was downsized from $1.125 billion, featured a downsized $475 million tranche of six-year senior secured notes (B2/B-) that priced at par to yield 5%. The tranche size decreased from $600 million with the shift of $125 million of proceeds to the concurrent bank loan. The yield printed at the tight end of the 5% to 5¼% yield talk and deep inside of initial guidance in the 6% area.
The deal also included a $525 million tranche of seven-year senior unsecured notes (Caa2/CCC) that priced at par to yield 7%, at the tight end of the 7% to 7¼% yield talk and also deep inside of initial guidance, which was in the 8% area.
Barclays ran the books and will bill and deliver.
The notes were sold via Kronos Acquisition Holdings Inc. and KIK Custom Products Inc.
The Rosemont, Ill.-based manufacturer and distributor of household cleaning, pool sanitation and automotive performance chemicals plans to use the proceeds to repay its existing term loans and senior notes and to fund a shareholder distribution.
| Issuers: | Kronos Acquisition Holdings Inc. and KIK Custom Products Inc.
|
| Amount: | $1 billion, decreased from $1.125 billion
|
| Bookrunner: | Barclays
|
| Trade date: | Dec. 17
|
| Settlement date: | Dec. 22
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Senior secured notes
|
| Amount: | $475 million, decreased from $600 million
|
| Maturity: | Dec. 31, 2026
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 448 bps
|
| First call: | June 30, 2023 at 103.75
|
| Ratings: | Moody's: B2
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| S&P: B-
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| Price talk: | 5% to 5¼%
|
|
|
| Senior unsecured notes
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| Amount: | $525 million
|
| Maturity: | Dec. 31, 2027
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| Coupon: | 7%
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| Price: | Par
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| Yield: | 7%
|
| Spread: | 663 bps
|
| First call: | Dec. 31, 2023 at 103.5
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC
|
| Price talk: | 7% to 7¼%
|
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