kdc/one updates U.S. and euro term loan sizes, trims spreads

By Sara Rosenberg

New York, Aug. 1 – kdc/one is now guiding its U.S. five-year first-lien term loan size at $600 million and its euro five-year first-lien term loan size at roughly $400 million equivalent, compared to talk at launch of $991.7 million equivalent of U.S. and euro term loan debt, with tranche sizes to be determined, according to a market source.

Also, pricing on the U.S. term loan was lowered to SOFR plus 475 basis points from SOFR plus 500 bps and pricing on the euro term loan was reduced to Euribor plus 500 bps from Euribor plus 525 bps, the source said.

In addition, the original issue discount on both term loans (B3/B-/B) was set at 97, the tight end of the 96 to 97 talk.

Both term loans still have a 0% floor and 101 soft call protection for six months.

UBS Investment Bank, Morgan Stanley Senior Funding Inc., BMO Capital Markets, JPMorgan Chase Bank, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Citizens, Natixis, RBC Capital Markets and KKR Capital Markets are the arrangers on the deal.

Commitments are due at 10 a.m. ET on Wednesday, accelerated from 5 p.m. ET on Wednesday, the source added.

Proceeds will be used with $500 million of senior secured notes to refinance the company’s existing first-lien credit facilities.

KDC US Holdings Inc. is the U.S. borrower, and kdc/one Development Corp. Inc. is the Canadian borrower.

kdc/one is a Longueuil, Quebec-based provider of value-added solutions to brands in the home care and beauty and personal care categories.

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