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Kronos sets talk on $370 million term B, details amend/extend offer
By Sara Rosenberg
New York, Dec. 12 - Kronos Inc. came out with price talk on its proposed $370 million incremental first-lien term loan B as well as on its amendment and extension proposal, as the deal launched with a call on Monday morning, according to a market source.
The new term loan B due December 2018 is being talked at Libor plus 475 basis points with a 1.25% Libor floor and an original issue discount of 98, the source said.
The incremental B loan will have 101 soft call protection for one year.
Proceeds from the new debt will be used to fund a distribution to shareholders.
With this transaction, the company is asking to amend its existing credit facility to allow for the new debt and use of proceeds as well as to extend maturities on its $60 million revolver, $635 million first-lien term loan B and a $355 million second-lien term loan.
The revolver would be pushed out by three years to June 2016 at pricing of Libor plus 450 bps, up from Libor plus 200 bps, the source stated.
The existing term loan B would be extended by three years to June 2017 at pricing of Libor plus 450 bps, up from Libor plus 225 bps, which was based on pro forma total leverage of 5.6 times.
The second-lien term loan would be extended by three years to June 2018 at pricing of Libor plus 825 bps, up from Libor plus 575 bps, the source added.
Commitments and consents are due at 5 p.m. ET on Dec. 20.
Existing lenders are being offered a 50 bps amendment fee.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Jefferies & Co. and Deutsche Bank Securities Inc. are the bookrunners on the deal.
Current and expected ratings are B2/B.
Kronos is a Chelmsford, Mass.-based provider of workforce management software.
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