Kissner finalizes $893 million term loan B repricing at 99.5 OID

By Sara Rosenberg

New York, April 23 – Kissner (SCIH Salt Holdings Inc.) set the original issue discount on its roughly $893 million covenant-lite first-lien term loan B (B3/B) due March 2027 at 99.5, the wide end of the 99.5 to 99.75 talk, according to a market source.

Pricing on the term loan remained at Libor plus 400 basis points with a 0.75% Libor floor.

The term loan still has 101 soft call protection for six months and amortization of 1% per annum.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Deutsche Bank Securities Inc., BMO Capital Markets, Goldman Sachs Bank USA, Citigroup Global Markets Inc., Citizens, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, KKR Capital Markets and RBC Capital Markets are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to reprice an existing term loan into the company’s recently syndicated $900 million incremental covenant-lite first-lien term loan B (B3/B) due March 2027 that is priced at Libor plus 400 bps with a 0.75% Libor floor and was sold at an original issue discount of 99.5.

Along with the incremental term loan, the company is getting a $275 million incremental revolver (B3/B) due March 2025.

Proceeds from the incremental bank debt will be used with $1.1 billion of secured notes, $700 million of unsecured notes and $993 million of equity to fund the acquisition of K+S AG’s Americas salt business for $3.2 billion, refinance existing debt, and pay associated fees and expenses.

Closing on the incremental bank debt and the repricing is expected during the week of April 26.

Kissner, a subsidiary of Stone Canyon Industries Holdings LLC, is an Overland Park, Kan.-based pure-play producer and supplier of salt.

© 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.