Kronos sets talk on first- and second-lien term loans with launch

By Sara Rosenberg

New York, Oct. 11 - Kronos Inc. came out with price talk on its first- and second-lien covenant-light term loans as the debt was launched with a bank meeting on Thursday morning, according to a market source.

The $1,155,000,000 seven-year first-lien term loan is talked at Libor plus 400 basis points to 425 bps with a 1.25% Libor floor and an original issue discount of 99, and the $745 million 71/2-year second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 1.25% floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 repricing protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $1,965,000,000 credit facility also provides for a $65 million five-year revolver.

Commitments are due on Oct. 23.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance debt and fund a dividend.

Kronos is a Chelmsford, Mass.-based provider of workforce management software.

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