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). |