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Kaman lifts term loan B to $815 million, revises OID to 99.75
By Sara Rosenberg
New York, March 26 – Kaman Corp. (Ovation Parent Inc.) upsized its seven-year senior secured covenant-lite first-lien term loan B to $815 million from $790 million, according to a market source.
Also, the original issue discount on the term loan was tightened to 99.75 from revised talk of 99.5 and initial talk of 99, and it was outlined that the term loan has a 25 bps pricing step-down if first-lien net leverage is 5.25x, the source said.
The term loan is still priced at SOFR plus 350 basis points with a 0.75% floor, and has 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.
Earlier in syndication, pricing on the term loan was lowered from SOFR plus 400 bps.
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 were scheduled to be due at noon ET on Tuesday, 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, to pay related fees and expenses, and, due to the upsizing, for general corporate purposes. The transaction has a total enterprise value of about $1.8 billion.
Closing is expected in April.
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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