Hyland Software tightens OIDs on first- and second-lien term loans

By Sara Rosenberg

New York, Aug. 9 – Hyland Software Inc. changed 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, according to a market source.

Pricing on the incremental first-lien term loan is Libor plus 350 basis points with a 0.75% Libor floor, and pricing on the incremental second-lien term loan is Libor plus 700 bps with a 0.75% Libor floor, in line with existing first- and second-lien term loan pricing.

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

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Recommitments were scheduled to be due at 10 a.m. ET on Friday, the source added.

Proceeds from the $320 million of incremental term loans will be used to 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.

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