TKC Holdings gets lender OK on loan amendment regarding portability

By Sara Rosenberg

New York, Nov. 8 – TKC Holdings Inc. received lender approval of its first- and second-lien credit agreements amendment that allows for the term loan debt to stay in place in a permitted change of control, according to a market source.

The amendment was approved after the company revised the loan portability window to 27 months from 30 months, the source said.

As before, the portability of the loans would be subject to 30% minimum equity and credit ratings of B3/B- with a stable outlook.

If a permitted change of control occurs, the company would refresh the 101 soft call protection for six months on the first-lien term loan and the call protection of 102 for one year and 101 for the second year on the second-lien term loan.

Also, lenders would be paid a 25 basis points one-time fee upon the change of control.

Currently, the first-lien term loan has a pricing step-up to Libor plus 425 bps if ratings are worse than B3/B- with a stable outlook and leverage is higher than 6.5 times, and that step-up would likely be triggered upon a change of control.

Jefferies LLC and KKR Capital Markets are the leads on the deal, with Jefferies managing the first-lien term loan and KKR managing the second-lien term loan.

Lenders were offered a 25 bps amendment fee.

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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