By Paul A. Harris
Portland, Ore., Feb. 9 – KIK Custom Products Inc. priced an upsized $235 million add-on to the Kronos Acquisition Holdings Inc. 9% senior notes due Aug. 15, 2023 at par to yield 9% on Thursday, a market source said.
The issue size was increased from $200 million.
The reoffer price came at the cheap end of the par to par ½ price talk.
Barclays, BMO Capital Markets Corp., Nomura Securities International Inc. and Macquarie Capital (USA) Inc. were the joint bookrunners.
The Toronto-based supplier of pool and spa treatment products and household and personal care products plans to use the proceeds, including those additional proceeds resulting from the $35 million upsizing of the deal, together with a combination of cash on hand and borrowings under its existing revolving credit facility, to fund the tender for its 7 3/8% senior notes due 2021, with any remaining proceeds to be used for general partnership purposes, which may include redemption of any outstanding 2021 notes that are not purchased in the tender offer.
The sponsor of KIK Custom Products is Centerbridge Partners.
| Issuer: | Kronos Acquisition Holdings Inc. (KIK Custom Products Inc.)
|
| Amount: | $235 million, increased from $200 million
|
| Maturity: | Aug. 15, 2023
|
| Security description: | Add-on to 9% senior notes due Aug. 15, 2023
|
| Bookrunners: | Barclays, BMO, Nomura, Macquarie
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Call: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2018, then callable at 106.75
|
| Equity clawback: | 40% at 109 until Aug. 15, 2018
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 15 with accrued interest
|
| Unsecured ratings: | Moody's: Caa1
|
| S&P: CCC
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | Par to par ½
|
| Marketing: | Quick to market
|
| Original issue: | $390 million priced at 89.57 to yield 11% in August 2015
|
| Previous add-on: | $265 million add-on priced at 103 to yield 8.243% on Sept. 8, 2016
|
| Fungibility: | Rule 144A notes to become immediately fungible with original notes; Regulation S notes to become fungible 40 days after settlement
|
| Total issue size: | $890 million
|
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