Kaman Distribution sets first- and second-lien term loan price talk

By Sara Rosenberg

New York, July 24 – Kaman Distribution Group (Ruby Holdings II LLC) released price talk on its $320 million seven-year first-lien term loan and $115 million eight-year second-lien term loan in connection with its bank meeting on Wednesday, according to a market source.

Price talk on the first-lien term loan is Libor plus 425 basis points to 450 bps with a 0% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 825 bps to 850 bps with a 0% Libor floor and a discount of 98.5, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan 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.

Jefferies LLC, Antares Capital and BMO Capital Markets are the lead arrangers on the deal.

Commitments are due on Aug. 7, the source added.

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

Closing 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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