Hyland Software has closed on a $3.4 billion unitranche financing via the private credit market that refinanced syndicated loans led earlier by Wall Street banks, market sources said.
The new credit includes a $3.25 billion term loan and a $150 million multi-currency revolver, according to a statement today from Golub Capital.
Golub Capital was administrative agent, left lead arranger and joint bookrunner on the deal. Other participants in the financing were funds of Ares Management Credit, Blue Owl Capital, Goldman Sachs Asset Management, Oak Hill Advisors, GIC, PSP, Ontario Teachers’ Pension Plan, Morgan Stanley Private Credit, Neuberger Berman Private Debt, CDPQ, Thoma Bravo Credit, HarbourVest Partners, Stone Point Credit and Jefferies Credit Partners, according to market sources.
The financing is covenant-lite, market sources said. The transaction included no new equity.
Private credit lenders have championed the unitranche loan, which combines senior and junior debt into a single debt facility.
Proceeds will refinance, dollar-for-dollar, outstanding syndicated debt consisting of a first-lien loan, a second-lien loan and a revolving credit facility. Proceeds are also earmarked to pay related transaction fees and expenses.
The issuer was last in the syndicated market with incremental term loans to finance an acquisition in March 2021. A $550 million second-lien loan was repriced at that time.
Ohio-based Hyland Software provides an enterprise content management platform to corporate clients worldwide. It has been a portfolio company of Thoma Bravo since 2007.
Golub Capital has closed more than 55 platform and add-on transactions with software and technology companies in the past 12 months, the firm said. It was lead agent on more than 85% of these deals.
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