21 Dec, 2021

KIK Custom Products completes $170M add-on term loan B-2; terms

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By Tyler Udland


Investors on Dec. 20 received allocations of a $170 million non-fungible incremental term loan B-2 due December 2026 for KIK Custom Products that priced via lead arranger Barclays, according to sources. The add-on term loan finalized at a spread of 600 basis points over the secured overnight financing rate, plus a credit spread adjustment, with a 1% floor and an original issue discount of 98. Proceeds from the deal will be used for working capital and, to some extent, for capital expenditure requirements for the company's Lake Charles facility, according to S&P Global Ratings. KIK Custom Products, which is backed by Centerbridge Partners, manufactures and distributes household cleaning, pool sanitation and automotive performance chemicals.

Terms:

Borrower KIK Custom Products Inc.; Kronos Acquisition Holdings Inc.
Issue $170 million non-fungible term loan B-2
UoP Working Capital
Spread Sofr+CSA+600
Sofr+CSA floor 1%
Price 98
Tenor December 2026
YTM 7.71%
Four-year yield 7.81%
Call protection 102, 101 hard calls
Corporate ratings B-/B3
Facility ratings B-/B2
Recovery ratings 4
Financial covenants None
Arrangers Barc
Admin agent Barc
Px Talk N/A
Sponsor Centerbridge Partners
Notes CSA: 10/15/25 bps (1-month, 3-month, 6-month).