PE-Owned Prison Vendor TKC Sells Debt After Shift in Funding Mix

TKC Holdings Inc. wrapped up its debt offering Monday after revamping the $1.6 billion sale’s structure twice.

The prison-food vendor, which is owned by HIG Capital, sold $675 million of unsecured bonds at a yield of 10.5% and $425 million of secured notes at a yield of 6.875%. TKC’s $525 million loan sold at a spread of 5.5 percentage points over the London interbank offered rate.

TKC struggled to drum up interest in its initial $1.125 billion loan offering before shifting the structure to rely more on bonds and increased yields. Part of that difficulty stemmed from some investors’ ...