KIK Custom Products returns to market with $900M term loan repricing

A Barclays-led arranger group has scheduled a lender call for today at 1 p.m. on behalf of KIK Custom Products Inc. to launch a proposed repricing of the company’s $900 million covenant-lite term loan B due December 2026, according to sources. Commitments will be due at 5 p.m. ET on Monday, Jan. 25.

Price talk is L+375 with a 0.5% Libor floor, offered at par with six months of 101 soft call protection. At talk, the yield to maturity is roughly 4.32%.

This marks a swift return to market for the issuer after having placed the existing term loan in December in a dividend recapitalization. As such, the company will pay the 101 call premium to execute the repricing. With this transaction, the pricing on the loan will be lowered from L+450 with a 0.75% floor.

Current facility ratings are B-/B2, with a 4 recovery rating from S&P Global Ratings, and corporate ratings are B-/B3. The borrower is Kronos Acquisition Holdings, Inc. and KIK Custom Products Inc.

As part of the recap transaction, the company issued $475 million of 5% senior secured notes due December 2026 and $525 million of 7% senior unsecured notes due December 2027. Proceeds were used to refinance existing term loans and senior notes and to fund a shareholder distribution.

KIK Custom Products, backed by Centerbridge Partners, is a manufacturer and distributor of household cleaning, pool sanitation and automotive performance chemicals.