KinderCare moves funds between first- and second-lien term loans

By Sara Rosenberg

New York, Aug. 16 – KinderCare (Kuehg Corp.) upsized its fungible incremental first-lien term loan due August 2022 to $100 million from $50 million and downsized its eight-year covenant-light second-lien term loan to $210 million from $260 million, according to a market source.

Furthermore, pricing on the second-lien term loan was set at Libor plus 825 basis points, the low end of the Libor plus 825 bps to 850 bps talk, the source said.

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

As before, pricing on the incremental first-lien term loan is Libor plus 375 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and an original issue discount of 99.5.

The first-lien loan still has 101 soft call protection for one year.

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

Recommitments were scheduled to be due at 2 p.m. ET on Wednesday, 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 first-lien 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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