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KIK Consumer Products sets talk in $1.13 billion two-part notes sale; pricing Thursday
By Paul A. Harris
Portland, Ore., Dec. 16 – KIK Consumer Products set price talk for its $1.125 billion two-part offering of high-yield notes on Wednesday, according to market sources.
The deal features a $600 million tranche of six-year senior secured notes talked to yield 5% to 5¼%, deep inside of initial guidance in the 6% area. The six-year notes become callable after 2.5 years at par plus 75% of the coupon. A special call provision enables the issuer to redeem 10% of the secured notes annually at 103 during the first three years.
The deal also includes a $525 million tranche of seven-year senior unsecured notes talked to yield 7% to 7¼%, also deep inside of initial guidance, which was in the 8% area. The seven-year notes become callable after three years at par plus 50% of the coupon.
In addition to price talk came covenant changes bearing upon a change-of-control provision in the bond indenture.
A change-of-control occurrence can take place no later than 36 months after the closing date of the current financing, increased from 24 months.
Also, pro forma gross total leverage can be no greater than 6.25-times after giving effect to the change of control. The previous threshold was 5.9-times.
Other aspects of portability remain unchanged.
Books close at noon ET on Thursday, and the Rule 144A and Regulation S for life deal is set to price on Thursday.
Bookrunner Barclays will bill and deliver.
The Rosemont, Ill.-based manufacturer and distributor of household cleaning, pool sanitation and automotive performance chemicals plans to use the proceeds to repay its existing term loans and senior notes and to fund a shareholder distribution.
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