kdc/one upsizes U.S. and euro term loans, adjusts pricing

By Sara Rosenberg

New York, Aug. 2 – kdc/one upsized its U.S. five-year first-lien term loan to roughly $1,003,500,000 from $600 million and its euro five-year first-lien term loan to €440 million from roughly $400 million equivalent, and canceled plans for a $500 million senior secured notes offering, according to a market source.

Also, pricing on the U.S. term loan was increased to SOFR plus 500 basis points from revised talk of SOFR plus 475 bps but is in line with initial talk of SOFR plus 500 bps, and pricing on the euro term loan was lifted to Euribor plus 525 bps from revised talk of Euribor plus 500 bps but is in line with initial talk of Euribor plus 525 bps, the source said.

Both term loans (B3/B-/B) still have a 0% floor, an original issue discount of 97 and 101 soft call protection for six months.

Earlier in syndication, the discount on both term loans was set at the tight end of the 96 to 97 talk.

UBS Investment Bank, Morgan Stanley Senior Funding Inc., BMO Capital Markets, JPMorgan Chase Bank, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Citizens, Natixis, RBC Capital Markets and KKR Capital Markets are the arrangers on the deal.

Recommitments are due at 11 a.m. ET on Thursday, with allocations expected thereafter, the source added.

Proceeds will be used to refinance the company’s existing first-lien credit facilities.

KDC US Holdings Inc. is the U.S. borrower, and kdc/one Development Corp. Inc. is the Canadian borrower.

kdc/one is a Longueuil, Quebec-based provider of value-added solutions to brands in the home care and beauty and personal care categories.

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