KinderCare launches $205 million incremental loan, term loan extension

By Sara Rosenberg

New York, Sept. 6 – KinderCare (Kuehg Corp.) was scheduled to hold a lender call at 1 p.m. ET on Thursday to launch a $205 million incremental first-lien term loan due February 2025 and an extension of its existing $972 million first-lien term loan to February 2025 from August 2022, according to a market source.

Price talk on the term loan debt is Libor plus 375 basis points with a 1% Libor floor, the source said, which matches current pricing on the existing term loan.

The incremental loan is talked with an original issue discount of 99.5, and the extended term loan is offered at par with a 25 bps amendment fee to existing extending/consenting lenders.

The term loan debt is also talked with 101 soft call protection for six months, the source continued.

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

Commitments are due at 5 p.m. ET on Sept. 13, the source added.

Proceeds from the incremental term loan will be used to support the recently completed acquisition of Rainbow Child Care Center, a Troy, Mich.-based child care provider.

KinderCare is a Portland, Ore.-based provider of early childhood care and education services.

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