Kissner launches $900 million term loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, April 7 – Kissner (SCIH Salt Holdings Inc.) launched on Wednesday its $900 million incremental covenant-lite first-lien term loan B due March 2027 with price talk of Libor plus 375 basis points to 400 bps with a 0.75% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

The company’s $1.175 billion of senior secured credit facilities (B3/B) also include a $275 million incremental revolver due March 2025.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Deutsche Bank Securities Inc., BMO Capital Markets, Goldman Sachs Bank USA, Citigroup Global Markets Inc., Citizens Bank, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, KKR Capital Markets and RBC Capital Markets are the joint lead arrangers and bookrunners on the deal. Morgan Stanley is the administrative agent.

Commitments are due at 5 p.m. ET on April 15, the source added.

Proceeds will be used with $1.1 billion of new secured debt, $700 million of new unsecured debt and $993 million of equity to fund the acquisition of K+S AG’s Americas salt business for $3.2 billion, refinance existing debt, and pay associated fees and expenses.

Closing is expected by the summer, subject to customary conditions, including antitrust approvals.

Kissner, a subsidiary of Stone Canyon Industries Holdings LLC, is an Overland Park, Kan.-based pure-play producer and supplier of salt.

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