Kronos reveals first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, Oct. 7 – Kronos Inc. released price talk on its $2.3 billion seven-year covenant-light first-lien term loan B (B2/B-) and $1 billion eight-year covenant-light second-lien term loan (Caa2/CCC) in connection with its lender call on Friday, according to a market source.

The first-lien term loan is talked at Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan is non-callable for one year, then at 102 in year two and 101 in year three.

The company’s $3.4 billion credit facility also provides for a $100 million five-year revolver (B2/B-).

Nomura, Jefferies Finance LLC and Macquarie Capital (USA) Inc. are the leads on the deal.

Commitments are due on Oct. 18, the source added.

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

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

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