KinderCare revises $205 million incremental term loan OID to 99.75

By Sara Rosenberg

New York, Sept. 14 – KinderCare (Kuehg Corp.) tightened the original issue discount on its $205 million incremental first-lien term loan (B2/B-) due February 2025 to 99.75 from 99.5, according to a market source.

Pricing on the incremental loan and on the extension of the company’s existing $972 million first-lien term loan (B2/B-) to February 2025 from August 2022 remained at Libor plus 375 basis points with a 1% Libor floor, which matches current pricing on the existing term loan.

As before, the extended term loan is offered at par with a 25 bps amendment fee to existing extending/consenting lenders, and all of the debt is getting 101 soft call protection for six months.

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

Recommitments were scheduled to be due at noon ET on Friday, 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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