K-MAC firms spread talk on $115 million loan at 425 bps over SOFR, OID talk now 99.25-99.5

By Paul A. Harris

Portland, Ore., Feb. 26 – K-MAC Enterprises, Inc. firmed talk on its $115 million non-fungible covenant-lite incremental first-lien term loan due July 2028 (expected ratings B3/B-) at SOFR plus 425 basis points, at the wide end of the 400 bps to 425 bps spread talk, according to a market source.

The spread will float atop a 0.5% floor.

Price talk increased to 99.25 to 99.5 from earlier guidance of 99.

The deadline was moved four hours ahead, with commitments now due at 1 p.m. ET on Tuesday; the prior deadline was 5 p.m. ET on Tuesday.

The deal, which is in the market via borrowing entity MIC Glen LLC, features 101 soft call protection for six months.

BMO is the left arranger. Goldman Sachs, KKR and RBC are the joint arrangers.

The Fayetteville, Ark.-based fast food restaurant operator, which is sponsored by Mubadala Capital, plans to use the proceeds to repay a $105 million second-lien term loan and revolver debt.

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