Kepro gives first- and second-lien term loan price talk with launch

By Sara Rosenberg

New York, Nov. 10 – Kepro disclosed price talk on its $200 million first-lien term loan and $75 million second-lien term loan with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 475 basis points to 500 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 1% Libor floor and a discount of 98.5, the source said.

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

The company’s $300 million credit facility also provides for a $25 million revolver.

Capital One and Barclays are the joint lead arrangers on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

First-lien leverage is 4 times, and total leverage is 5.5 times.

Kepro is a Harrisburg, Pa.-based quality improvement and care management organization.

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