KIK Custom Products Said to Seek $640 Million Refinancing Loans

KIK Custom Products Inc., a bleach manufacturer, is seeking $640 million in loans to support a refinancing, according to a person with knowledge of the transaction.

The Credit Suisse Group AG-led transaction will include a $420 million, first-lien piece due in 6 years and a $220 million second-lien portion that comes due in 6.5 years, said the person, who asked not to be identified because the deal is private.

The first-lien slice may pay interest at 4.25 percentage points more than the London interbank offered rate and will be offered to lenders at 99 cents on the dollar while the second-lien piece may pay 8.25 percentage points more than Libor and be sold at 98 cents, the person said. Both loans will have a 1.25 percent minimum on the lending benchmark.

KIK will host a lender meeting on May 2 and 10:30 a.m. in New York, the person said, and lenders must let Credit Suisse know by May 15 if they will participate in the transaction.

First-lien debt is repaid first in a bankruptcy or liquidation, second-lien debt is repaid next.

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