Kaman cuts spread on $790 million term loan B to SOFR plus 350 bps

By Sara Rosenberg

New York, March 25 – Kaman Corp. (Ovation Parent Inc.) reduced pricing on its $790 million seven-year senior secured covenant-lite first-lien term loan B (B2/B/BB) to SOFR plus 350 basis points from SOFR plus 400 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.5 from 99, the source said.

The term loan still has a 0.75% floor, 101 soft call protection for six months, 0 bps CSA, amortization of 1% per annum, and ticking fees of half the margin from days 61 to 120 and the full margin thereafter.

Morgan Stanley Senior Funding Inc., BMO Capital Markets, RBC Capital Markets, Stifel and Capital One are the bookrunners on the deal. Morgan Stanley is the agent.

Recommitments are due at noon ET on Tuesday, revised from an original commitment deadline of noon ET on Wednesday, the source added.

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $150 million revolving credit facility.

Proceeds will be used with equity to fund the buyout of the company by Arcline Investment Management LP for $46.00 per share in cash, and to pay related fees and expenses. The transaction has a total enterprise value of about $1.8 billion.

Closing is expected in the first half of this year, subject to customary conditions, including approval by Kaman shareholders and receipt of required regulatory approvals.

Kaman is a Bloomfield, Conn.-based OEM and producer of subassemblies, components and parts for the aerospace & defense, industrial and medical markets.

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