Prison Vendor TKC's $2.3 Billion Junk Deal Doubles Payout to HIG

Prison-food vendor TKC Holdings Inc. borrowed nearly $2.3 billion on Wednesday in a junk bond and leveraged loan deal to refinance existing debt and pay a dividend to its private equity owner.

TKC, which is owned by HIG Capital, sold a $500 million first-lien loan at 4.5 percentage points over the benchmark rate at 99 cents on the dollar, according to people with knowledge of the matter, who asked not to be named discussing a private transaction. The company also priced a $1.1 billion first-lien bond with a coupon of 8.5% and $675 million of second-lien notes at 12%, both at par, the people added.