TKC Midco launches PIK toggle term loan, upsizes and prices

By Sara Rosenberg

New York, Feb. 8 – TKC Midco 1 LLC launched on Tuesday morning its $305 million five-year PIK toggle HoldCo term loan with pricing of 12% cash, 13% PIK in year one and 13.5% PIK thereafter and original issue discount talk of 98 to 99, according to a market source.

Late in the day, the term loan was upsized to $320 million and the discount finalized at 98, the source said.

The loan is non-callable for one year, then at 108 in year two, 106 in year three and 104 in year four.

Jefferies LLC is the lead arranger on the deal.

Commitments were scheduled to be due at 3 p.m. ET on Tuesday and allocations went out shortly thereafter, the source added.

Proceeds will be used to fund a shareholder distribution.

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

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