Kissner eliminates term loan step-downs, updates floor and OID

By Sara Rosenberg

New York, March 3 – Kissner Group Holdings LP (SCIH Salt Holdings Inc.) removed the two pricing step-downs from its $900 million seven-year covenant-lite first-lien term loan B (B3/B), which would have allowed pricing to drop by 25 bps at 0.5x inside closing date first-lien net leverage and by 25 bps at 1x inside closing date first-lien net leverage, according to a market source.

Also, the Libor floor on the term loan was increased to 1% from 0%, the original issue discount firmed at 99, the wide end of the 99 to 99.5 talk, and the 101 soft call protection was extended to one year from six months, the source said.

Pricing on the term loan remained at Libor plus 450 basis points.

The company’s $1.225 billion of senior secured credit facilities also include a $125 million five-year revolver (B3/B) and a $200 million privately placed second-lien term loan.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BofA Securities Inc., BMO Capital Markets, KKR Capital Markets and Citizens Bank are the joint lead arrangers and bookrunners on the deal.

Recommitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used to help fund the acquisition of Kissner by Stone Canyon Industries Holdings LLC from Metalmark Capital Holdings LLC and Silvertree-KMC II LP.

Closing is expected on March 12.

Kissner is an Overland Park, Kan.-based pure-play producer and supplier of salt.

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