Kaman Distribution widens first- and second-lien term loan pricing

By Sara Rosenberg

New York, Aug. 9 – Kaman Distribution Group (Ruby Holdings II LLC) increased pricing on its $320 million seven-year first-lien term loan (B2/B) to Libor plus 500 basis points from talk in the range of Libor plus 425 bps to 450 bps and 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, according to a market source.

In addition, the original issue discount on the first-lien term loan was revised to 98 from 99 and the discount on the second-lien term loan was changed to 96 from 98.5, the source said.

Furthermore, the 101 soft call protection on the first-lien term loan was extended to one year from six months, and some documentation changes were made.

Both 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.

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

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