K-Mac launches $645 million credit facilities to investors

By Sara Rosenberg

New York, June 10 – K-Mac Holdings Corp. held a lender call on Thursday to launch $645 million of credit facilities, according to a market source.

The facilities consist of a $60 million revolver (B2), a $480 million first-lien term loan (B2) and a $105 million second-lien term loan (Caa2).

Price talk on the first-lien term loan is Libor plus 350 basis points to 375 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 675 bps to 700 bps with a 0.5% Libor floor and a discount of 99.5, the source said.

The first-lien term loan has 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.

BMO Capital Markets, Goldman Sachs Bank USA, KKR Capital Markets and RBC Capital Markets are the leads on the deal.

Commitments are due at noon ET on June 23, the source added.

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

K-Mac is a Fort Smith, Ark.-based owner and operator of Taco Bell restaurants.

© 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.