Kaman launches $790 million term loan B at SOFR plus 400 bps

By Sara Rosenberg

New York, March 19 – Kaman Corp. (Ovation Parent Inc.) launched on Tuesday its $790 million seven-year senior secured covenant-lite first-lien term loan B (B2/B/BB) with price talk of SOFR plus 400 basis points with a 0.75% floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, no CSA and amortization of 1% per annum, the source said.

In addition, the term loan has 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.

Commitments are due at noon ET on March 27, 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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