Hyland Software launches $810 million of term loans to investors

By Sara Rosenberg

New York, March 22 – Hyland Software Inc. was scheduled to hold a lender call at 1:30 p.m. ET on Monday to launch $810 million of term loans, according to a market source.

The debt consists of a fungible $110 million incremental covenant-lite first-lien term loan due July 2024, and a $700 million covenant-lite second-lien term loan due July 2025, of which $150 million is an incremental loan and the remainder is a repricing of the existing second-lien loan, the source said.

Price talk on the incremental first-lien term loan is Libor plus 350 basis points with a 0.75% Libor floor and an original issue discount of 99.5.

The second-lien term loan debt is talked at Libor plus 625 bps with a 0.75% Libor floor. The incremental tranche is talked with an original issue discount of 99.5 and the repricing is offered at par, the source continued.

The second-lien term loan has 101 hard call protection for one year.

Expected first-lien ratings are B1/B-, and expected second-lien ratings are Caa1/CCC.

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

Commitments are due at 5 p.m. ET on Thursday, the source added.

Proceeds from the incremental debt will be used to fund the acquisition of Nuxeo, a content services platform and digital asset management provider, and the repricing will take the existing second-lien term loan down from Libor plus 700 bps with a 0.75% Libor floor.

Closing is expected in April.

Hyland is a Westlake, Ohio-based content services platform provider.

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