KinderCare launches $310 million in term loans to investors

By Sara Rosenberg

New York, Aug. 2 – KinderCare (Kuehg Corp.) launched on its lender call on Wednesday a fungible $50 million incremental first-lien term loan due August 2022 and a $260 million eight-year covenant-light second-lien term loan, according to a market source.

Talk on the incremental first-lien term loan is Libor plus 375 basis points with a 1% Libor floor, in line with existing first-lien term loan pricing, and an original issue discount of 99.5, the source said.

The second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 99, the source continued.

Included in the incremental first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC and Barclays are the leads on the deal.

Commitments are due on Aug. 16, the source added.

Proceeds will be used to fund a shareholder distribution.

The company is also seeking an amendment to its existing credit agreement to allow for the distribution.

Existing lenders are offered a 25 bps 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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