Kepro sets talk on first- and second-lien term loans with launch

By Sara Rosenberg

New York, April 25 – Kepro (Keystone Acquisition Corp.) released price talk on its $205 million seven-year first-lien term loan and a $100 million eight-year second-lien term loan with its bank meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 800 bps to 825 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 debt has a maximum total net leverage ratio covenant.

The company’s $330 million in credit facilities also provide for a $25 million revolver.

RBC Capital Markets LLC and Capital One are the leads on the deal.

Commitments are due at noon ET on May 4, the source added.

Proceeds will be used to help fund the buyout of the company.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.