Clear Channel Outdoor, Hyland Software, Jaggaer free to trade; Kaman Distribution updated

By Sara Rosenberg

New York, Aug. 9 – Clear Channel Outdoor Holdings Inc. finalized the spread on its term loan B at the low end of talk, added a step-down and tightened the original issue discount, and then the debt surfaced in the secondary market on Friday.

Additionally, Hyland Software Inc. modified issue prices on its first-and second-lien term loans before breaking for trading, and Jaggaer’s term loan freed up as well.

In more happenings, Kaman Distribution Group (Ruby Holdings II LLC) widened spreads and original issue discounts on its first-and second-lien term loans, and sweetened the call protection on the first-lien tranche.

Clear Channel tweaked, breaks

Clear Channel Outdoor firmed pricing on its $2 billion seven-year covenant-lite first-lien term loan B at Libor plus 350 basis points, the low end of the Libor plus 350 bps to 375 bps talk, added a 25 bps step-down upon B2/B corporate family ratings, and changed the original issue discount to 99.5 from 99, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s $2.2 billion of credit facilities (B1/B+/BB-) also include a $200 million revolver.

Recommitments were due at 10 a.m. ET on Friday and the term loan B began trading later in the day, with levels quoted at par ¼ bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Barclays, Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and pay related fees and expenses. Deutsche is the administrative agent.

Closing is expected on Aug. 23.

Clear Channel Outdoor is a New York-based outdoor advertising company.

Hyland revised, frees up

Hyland Software adjusted the original issue discount on its $205 million incremental first-lien term loan (B1/B-) due July 1, 2024 to 99.75 from 99.5 and the discount on its $115 million incremental second-lien term loan (Caa1/CCC) due July 7, 2025 to 99.5 from 99, a market source remarked.

Like the existing loans, the incremental first-lien term loan is priced at Libor plus 350 bps with a 0.75% Libor floor and the incremental second-lien term loan is priced at Libor plus 700 bps with a 0.75% Libor floor.

Included in the incremental first-lien term loan is 101 soft call protection for six months, and the incremental second-lien term loan has 101 hard call protection until April 2020.

Recommitments were due at 10 a.m. ET on Friday and the debt freed to trade during the session, with the first-lien term loan quoted at par bid, par ½ offered and the second-lien term loan quoted at par bid, par ¼ offered, another source added.

Credit Suisse Securities (USA) LLC is leading the deal that will fund a distribution to shareholders.

Existing lenders are getting a 12.5 bps consent fee.

Hyland, a Thoma Bravo portfolio company, is a Westlake, Ohio-based enterprise content-management software developer.

Jaggaer hits secondary

Jaggaer’s $510 million seven-year first-lien term loan (B2/B-) also broke for trading, with levels quoted at par bid, par ¾ offered, a market source said.

Pricing on the term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps when first-lien net leverage is 4.2x and a 0% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 400 bps to 425 bps talk, the step-down was added and the discount was tightened from 99.

Goldman Sachs Bank USA, UBS Investment Bank, Antares Capital and CPPIB are leading the deal that will be used to help fund the buyout of the company by Cinven from Accel-KKR.

Jaggaer is a Research Triangle Park, N.C.-based cloud-based suite of SaaS solutions to help corporations track, manage and control vendor expenses.

Kaman changes emerge

Back in the primary market, Kaman Distribution Group lifted pricing on its $320 million seven-year first-lien term loan (B2/B) to Libor plus 500 bps from talk in the range of Libor plus 425 bps to 450 bps, changed the original issue discount to 98 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

Also, the company flexed pricing on its $115 million eight-year second-lien term loan (Caa2/CCC+) to Libor plus 900 bps from talk in the range of Libor plus 825 bps to 850 bps and widened the discount to 96 from 98.5, the source said.

In addition, some revisions were made to documentation.

The term loans still have a 0% Libor floor, and the second-lien term loan still has hard call protection of 102 in year one and 101 in year two.

The company’s $510 million of credit facilities also include a $75 million five-year ABL revolver.

Kaman being acquired

Proceeds from Kaman Distribution’s credit facilities will be used to help fund its buyout by Littlejohn & Co. from Kaman Corp. for total cash consideration of $700 million, subject to customary closing conditions and working capital adjustments.

Jefferies LLC, Antares Capital and BMO Capital Markets are leading the debt.

Recommitments are due at 4 p.m. ET on Monday, the source added.

Closing on the buyout is expected in the third quarter.

Kaman Distribution is a distributor of bearings and power transmission, automation and fluid power products.

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