Prison-Food Vendor TKC Selling Leveraged Loan Amid ESG Concerns
- Company’s past debt sale struggled due to link with prisons
- TKC reported strong earnings after refinancing debt last year
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TKC Holdings Inc., a prison-food vendor that has struggled with debt sales in the past due to investor concerns about businesses tied to mass incarceration, is selling a $305 million loan to fund a payout to shareholders.
The company, owned by private-equity firm HIG Capital LLC, launched the five-year loan Monday. It’s structured as a “payment-in-kind” deal where the company can choose to pay the interest in cash or more debt, according to a person with knowledge of the matter.