K-Mac Holdings firms spreads on first- and second-lien term loans

By Sara Rosenberg

New York, June 17 – K-Mac Holdings Corp. finalized pricing on its $480 million first-lien term loan (B2/B-) at Libor plus 350 basis points, the low end of the Libor plus 350 bps to 375 bps talk, and on its $105 million second-lien term loan (Caa2/CCC) at Libor plus 675 bps, the low end of the Libor plus 675 bps to 700 bps talk, according to a market source.

As before, the first-lien term loan has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan has a 0.5% Libor floor, a discount of 99.5 and hard call protection of 102 in year one and 101 in year two.

The company’s $645 million of credit facilities also include a $60 million revolver (B2/B-).

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 Friday, accelerated from an original deadline of noon ET on Wednesday, 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.

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