TKC reworks first- and second-lien term loan sizes, updates pricing

By Sara Rosenberg

New York, Jan. 26 – TKC Holdings Inc. upsized its six-year first-lien term loan to $1.1 billion from $1.05 billion and downsized its seven-year second-lien term loan to $260 million from $300 million, according to a market source.

Also, pricing on the first-lien term loan firmed at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and pricing on the second-lien term was reduced to Libor plus 800 bps from talk of Libor plus 825 bps to 850 bps, the source said.

In addition, the original issue discount on the first-lien term loan was changed to 99.5 from 99 and the discount on the second-lien term loan tightened to 98.5 from 98, the source continued.

As before, both term loans have a 1% Libor floor, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s now $1.41 billion credit facility, up from $1.4 billion, also includes a $50 million revolver.

Commitments were due at 5 p.m. ET on Thursday, accelerated from Tuesday, the source added.

Jefferies Finance LLC and KKR Capital Markets are the leads on the deal, with Jefferies left on the first-lien and KKR left on the second-lien.

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

TKC is a St. Louis-based provider of commissary, food service and related technology products to the corrections industry, and a provider of in-room coffee service to hotels and motels.

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