Kronos sets Tuesday launch for $1.115 billion credit facility

By Sara Rosenberg

New York, May 10 - Kronos Inc. has scheduled a bank meeting for Tuesday to launch its proposed $1.115 billion senior secured credit facility, according to a syndicate document.

Wachovia, Credit Suisse and JPMorgan are the lead banks on the deal.

The facility consists of a $60 million six-year revolver talked at Libor plus 225 basis points with a 50 bps commitment fee, a $665 million seven-year first-lien term loan talked at Libor plus 225 bps and a $390 million eight-year second-lien term loan talked at Libor plus 550 bps, the document said.

Previously, based on filings with the Securities and Exchange Commission, the second-lien term loan was expected to be sized at $400 million, which would have made the total deal size $1.125 billion.

Proceeds will be used to help fund the buyout of Kronos by Hellman & Friedman and JMI Equity for $55.00 in cash per share of common stock. The transaction is valued at $1.8 billion.

Other LBO financing will come from equity financing, cash, cash equivalents and short-term investments of Kronos.

Kronos is a Chelmsford, Mass., provider of human capital management services.

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