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Kymera lifts spread on $240 million term loan to Libor plus 550 bps
By Sara Rosenberg
New York, Sept. 28 – Kymera International increased pricing on its $240 million seven-year covenant-light first-lien term loan (B2/B) to Libor plus 550 basis points from talk in the range of Libor plus 500 bps to 525 bps, according to a market source.
Also, the original issue discount on the term loan was revised to 98.5 from 99 and the 101 soft call protection was extended to one year from six months, the source said.
In addition, the sunset and carve-outs were removed from MFN so the loan has 50 bps MFN for life, the incremental was reduced to the greater of 75% of EBITDA and $37.5 million from 100% of EBITDA and $50 million, the “no worse” language related to leverage before a permitted acquisition was removed, the asset sale step-downs from mandatory prepayments were eliminated, and the excess cash flow sweep was modified to 75% with step-downs to 50%, 25% and 0% at 0.5 times, 1 time and 1.5 times inside closing net first-lien leverage, respectively, the source continued.
The term loan has no pricing step-downs.
As before, the term loan has a 0% Libor floor and amortization of 2.5% per annum, and the company is required to hold quarterly management earnings calls.
The company’s $275 million of credit facilities also include a $35 million ABL revolver.
Goldman Sachs Bank USA, HSBC Securities (USA) Inc. and KeyBanc Capital Markets are the leads on the deal.
Recommitments were scheduled to be due at 5 p.m. ET on Friday, the source added.
Proceeds will be used to help fund the buyout of the company by Palladium Equity Partners.
Kymera is a Research Triangle Park, N.C.-based specialty materials company focused on the copper and aluminum metal powder industry.
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