Knowlton Development talks $300 million add-on term loan at 99.5 OID

By Sara Rosenberg

New York, Jan. 15 – Knowlton Development Corp. (KDC/ONE) launched on Wednesday its fungible $300 million add-on covenant-lite first-lien term loan due Dec. 21, 2025 with original issue discount talk of 99.5, according to a market source.

Pricing on the add-on term loan is Libor plus 425 basis points with a 0% Libor floor, in line with existing term loan B pricing.

UBS Investment Bank and Jefferies LLC are the bookrunners on the deal.

Commitments are due on Jan. 24, the source added.

Proceeds will be used to help fund the acquisition of HCT Group.

Other funds for the transaction will come from new equity from Knowlton Development’s sponsor, Cornell Capital, as well as reinvestment equity from the founder and existing management of HCT.

Closing is expected early this quarter, subject to customary conditions.

Knowlton Development is a Longueuil, Quebec-based manufacturer and custom formulator of color cosmetics, skincare, haircare, bath & body, fragrance, deodorant, home, health, industrial and auto care products. HCT is a Santa Monica, Calif.-based designer, engineer and manufacturer of packaging solutions for global beauty brands.

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