TKC Holdings Inc. has completed a $320 million holdco pay-in-kind-toggle term loan through sole lead arranger Jefferies, according to sources. The five-year fixed-rate term loan has a 12% cash-pay coupon, or 13% if paying in-kind in year one and 13.5% PIK thereafter. The loan priced at the wide end of talk at an issue price of 98. Proceeds from the deal, which was upsized by $15 million, will be used to fund a shareholder dividend. TKC Holdings, backed by H.I.G. Capital, provides outsourced food and commissary services to correctional facilities.
Terms:
| Borrower | TKC Midco I LLC |
| Issue | $320 million PIK toggle term loan |
| UoP | Dividend recapitalization |
| Coupon | 12.00% cash (13% if PIK in year one, 13.50% if PIK thereafter) |
| Price | 98 |
| Tenor | 5-year |
| Call protection | NC1; 108, 106, 104 calls |
| Corporate ratings | B-/B3 |
| Facility ratings | NR/NR |
| Recovery ratings | NR |
| Financial covenants | None |
| Arrangers | Jeff |
| Admin agent | Jeff |
| Px Talk | 12% @ 98-99 (PIK: 13%, 13.5%) |
| Sponsor | H.I.G. Capital |
| Notes | Upsized by $15 million |