Hyland Software discloses talk on first- and second-lien term loans

By Sara Rosenberg

New York, May 15 – Hyland Software Inc. released price talk on its $460 million incremental first-lien term loan due July 2022 and $240 million eight-year covenant-light second-lien term loan in connection with its lender call on Monday, according to a market source.

The incremental first-lien term loan is talked with an original issue discount of 99.5, the source said.

As previously reported, pricing on the incremental first-lien term loan is Libor plus 325 basis points with a 0.75% Libor floor, and the debt has 101 soft call protection for six months.

Price talk on the second-lien term loan is Libor plus 750 bps to 775 bps with a 0.75% Libor floor and an original issue discount of 99, the source continued.

Call protection on the second-lien term loan is 102 in year one and 101 in year two.

The term loans have a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

The company’s $760 million in new bank debt also includes a $60 million incremental revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and UBS Investment Bank are the leads on the deal.

Commitments are due at 5 p.m. ET on May 24.

Existing lenders are being offered a 12.5 bps amendment fee, the source added.

Proceeds will be used to fund the acquisition of Perceptive Software from Lexmark International Inc.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

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

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