A group of private-credit lenders led by Golub Capital, Ares Management Corp, Blue Owl Capital, and Oak Hill Advisors, are in talks to extend a $3.25bn loan to Hyland Software Inc, so the company can refinance existing debt, according to a report by Bloomberg.
The report cites unnamed sources as revealing that the transaction also includes a $150m revolving credit facility, putting the total package at $3.4bn – making it one of the largest private credit deals on record – and comes as direct lenders are pivoting to refinancing existing debt from tradionally funding leveraged buyouts.
Pricing is being discussed at 600 basis points over the Secured Overnight Financing Rate at a discounted price of 98.5 cents on the dollar, according to Bloomberg’s sources, with the proceeds set to be used to refinance the Thoma Bravo-owned software company’s outstanding $2.5 billion first-lien loan, a $670 million second-lien loan and a revolving credit facility.
