KinderCare launches $250 million incremental term loan at 99 OID

By Sara Rosenberg

New York, March 14 – KinderCare Learning Cos. Inc. (Kuehg Corp.) launched on Thursday its fungible $250 million incremental first-lien term loan B due June 12, 2030 (//BB) with original issue discount talk of 99, according to a market source.

Pricing on the incremental term loan is SOFR plus 500 basis points with a 0.5% floor, in line with existing term loan pricing.

The incremental term loan has amortization of 1% per annum.

Barclays, Macquarie Capital (USA) Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., UBS Investment Bank, Jefferies LLC, KKR Capital Markets and Citizens are the joint lead arrangers on the deal.

Commitments are due at noon ET on March 21, the source added.

Proceeds will be used for general corporate purposes, including a potential distribution to shareholders and/or potential mergers and acquisitions, and to pay transaction expenses.

Pro forma for the transaction, the term loan will total $1.572 billion.

KinderCare is a Lake Oswego, Ore.-based provider of private early childhood care and education.

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