KinderCare launches $200 million tack-on first-lien loan to lenders

By Sara Rosenberg

New York, Jan. 24 – KinderCare Education LLC (Kuehg Corp.) held a lender call at 3 p.m. ET on Tuesday to launch a fungible $200 million tack-on first-lien term loan due Aug. 13, 2022, according to a market source.

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

Pricing on the tack-on term loan is Libor plus 425 basis points with a 1% Libor floor, in line with existing term loan pricing, the source said.

Original issue discount talk on the tack-on loan is 99.5, the source continued.

Like the existing term loan, the tack-on loan has 101 soft call protection through April 18, 2017.

Proceeds will be used to repay an existing second-lien term loan at 102, the source added.

Commitments are due at 5 p.m. ET on Feb. 1.

Lenders are being offered a 5 bps amendment consent fee.

KinderCare, formerly known as Knowledge Universe, is a Portland, Ore.-based provider of early childhood care and education services.

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